Formula coming, oil price reduction soon: Minister

A new pricing formula taking into consideration the international fuel price reduction is to be submitted to the President soon, Petroleum Minister Chandima Weerakkody said. He said the formula would be discussed with the Finance Ministry before implementation.

“The Government will take a decision regarding the reduction of fuel prices with the implementation of a new price formula. We expect the new pricing formula will be implemented within a month. There should be a basis for reducing prices. “There is a fluctuation of prices in the world market and reductions cannot be done on a regular basis. We will prepare a report on how it should be done and send it to the President,” he said.

Mr. Weerakkody said that the ministry in its recommendations would propose to whom concessions should be given.
A senior Finance Ministry official said the fuel concessions should be given in a manner that it did not further burden the national budget. “We cannot decide on a fuel price reduction based only on the falling international prices,” he said.

Over the weekend, the price of crude oil dropped to less than US$ 45 a barrel, compared to about US$ 100 during the same period last year. Opposition politicians have called on the Government to further reduce prices.

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CA to make representations to SEC on ‘whistle blowing’

By Duruthu Edirimuni Chandrasekera

The Institute of Chartered Accountants Sri Lanka (CA) is to make representations to the Securities and Exchange Commission (SEC) on ‘whistle blowing’, officials say. ”We are in the process of making representations to the SEC to find the right balance in terms of whistle blowing,” a CA official told the Business Times.

He added that while they are awaiting SEC’s draft legislation which aims to incorporate fresh laws mandating auditors to bring any financial irregularities to the SEC, the CA is in the process of reviewing their Ethics Code, to be out next year and that they want to incorporate the whistle blowing elements into this code.

He pointed out that whistle blowing by accountants and auditors are filled with ethical challenges and that they are sensitive to mandated whistle blowing.

“Auditors have confidentiality obligation not to divulge client information,” he said, adding that they are supposed to seek out and find instances of materially false and ambiguous financial statements. But the SEC says that when the cost of non-disclosure is potentially damaging to individuals or society, discretion must be overridden. They say that similar laws are adopted in countries such as Malaysia and the US.
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Laugfs to get 2nd ship by month end

By Duruthu Edirimuni Chandrasekera

Laugfs Gas PLC (LGL), an energy group, through its new subsidiary Laugfs Maritime Services Pvt Ltd (LMS) is wrapping up the final loose ends to purchase its second vessel to transport downstream Liquefied Petroleum Gas (LPG), officials said.

This has come on the back of a similar purchase last year, which came at a cost of US$ 6.9 million, with officials saying that the new ship will also cost about the same and is scheduled to arrive by month end. They said that a second ship, bought from Greece, was needed to cater to the burgeoning LPG demand. “The LPG prices are coming down significantly and the demand for LPG is rising, where it has come to a point that we cannot cope with it,” an official told the Business Times, explaining that LMS wants to own, operate, hire and charter various types and size of ships including LPG vessel and other type of vessels that can carry various energy products.

He added that the Laugfs Group has plans to control their logistics on their own. In a bid to carry this plan forward, Laugfs’s fully owned subsidiary Laugfs Terminal Ltd, entered into a business venture with Sri Lanka Ports Authority (SLPA) to set up a LPG storage terminal project at the Hambantota Mahinda Rajapaksa Port last year. Laugfs will lease land for two projects, one of which will be to establish an LPG storage and distribution plant at a cost of $20 million while a less expensive effort will be made to build a lubricants blending plant with a capacity of 50 000 metric tons per annum at a cost of $1.14 million.

LGL now primarily engages in the operations of import, storage, filling, distribution and sale of LPG. Its plant in Mabima in the Western Province contains a storage facility of 3,000 MT. LGL operates as the only private – sector owned-gas company with a market share of 30 per cent in a duopoly market with state owned Litro Gas as its sole competitor. LGL’s operations cater to the domestic sub sector, commercial sub sector and industrial bulk sector.

Laugfs’ other sectors including vehicle emission testing (VET), leisure, mini hydro power generation, property development and transport and logistics via five subsidiaries Laugfs Eco Sri (Pvt) Ltd, Laugfs Leisure Ltd, Laugfs Power Ltd and Laugfs Property Developers (Pvt) Ltd.

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Gestetner records 67% profit growth in 2014/15

Gestetner of Ceylon PLC continued on the upward trajectory for the financial year 2014/2015. The company marked a significant growth in profit for the financial period ending March 2015, with profit after tax for the year growing by 67%.

Revenue for the year also improved notably at a 16% increase on the previous year. This can be attributed to a cohesive expansion of the company's dealer network, with a strong presence of 22 dealers across the island at present. The company, which imports office automation equipment in Sri Lanka, has also introduced several new products and services to its portfolio over the last year. Most recently it presented a total document solution, which currently services several top corporates in Sri Lanka.

Profit-wise, Gestetner marked a robust growth for the year at Rs 52.33 million, in comparison to the previous financial year's Rs 31.31 million. Basic earnings per share also rose from Rs 13.74 to Rs 22.97. Dividends per share rose by 80% to Rs 9 per share.

"The rapid growth in profit we've witnessed over the last few financial years is quite remarkable," noted Chandima Perera, Managing Director for Gestetner of Ceylon PLC, adding that this steady financial growth was largely due to the company's willingness to constantly reinvent itself. "We're determined to keep pace with rapidly evolving market needs for the kind of services and products we offer, and that keeps us at the top of our game."

Having pioneered the introduction of digital copiers in Sri Lanka, Gestetner today offers cutting-edge digital document management solutions such as digital duplicators, digital imaging systems, network laser printers, and facsimile machines. With partners Ricoh Asia Pacific, the company has made significant strides in its retail business, introducing products such as digital copiers and P2P (Print to Profit) copier outsourcing services – another first for the country. Gestetner celebrated its 50th anniversary as a public quoted company in Sri Lanka last year, and commands the market as one of the top three document solution providers in the industry.
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