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Annual Report of the State Engineering Corporation of Sri Lanka for the Financial Year Ended on 31St December 2010

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Annual Report of the State Engineering Corporation of Sri Lanka for the Financial Year Ended on 31St December 2010 Annual Report 2010 Ministry of Construction, Engineering Services, Housing & Common Amenities Buddhasrawaka Bikku University Construction Group Face-lift of People’s Bank Head Office Building Mechanical & Electrical Group Refurbishment of R. Premadasa International Cricket Stadium Construction Components Group Proposed three Storied Building, Lanka German Technical College Consultancy Group Contents Corporate Information 4 Board of Directors of the Corporation 4 Corporate Management 5 Senior Management Team 5 Vision and Mission Statement of the Corporation 6 Goals & Core Values 7 Chairman’s Message 8 Progress Review of the Corporation 10 Construction Group Activities 14 Mechanical & Electrical Group Activities 18 Construction Components Group Activities 22 Consultancy Group Activities 26 Human Resources & Administration Division 29 Internal Audit Division 31 Financial Results 33 Report of the Auditor General 50 Corporate Information Name of Corporation - State Engineering Corporation of Sri Lanka. Legal Status - Fully owned Enterprise of the Government of the Democratic Socialist Republic of Sri Lanka. Name of Ministry - Construction, Engineering Services, Housing & Common Amenities. Registered Office - 130, W.A.D. Ramanayaka Mawatha, Colombo 02 Tel: 011-2434691 Fax: 011-2421262 E-mail:[email protected] www.secsl.lk Board of Directors - 2010 Mr. B.V.S.K.De Silva - Chairman (Jan-May, 2009-2010) Prof. Ashu Marasinghe - Chairman (May-Dec, 2010) Mr. S.A.S.Wickramarathne - Acting Vice Chairman (Jan-May) Mr. Akila Saliya Ellawala - Vice Chairman (May-Dec) Mr. P.L.Dilantha Mahindapala - Working Director (Jan-May) Mr. Eng.Wasantha Ehelapitiya - Working Director (May-Sep) Mr. M.F.Mohamad Muzammil - Working Director (Sep-Dec) Mrs. Damitha Rathnayake - Director (Treasury Representative) Eng. Chandranandana Diunuge - Director Mr. Dennis Fernando - Director Mr K.P.Dias - Director Eng. Wimal Jayawardana - Director Mrs. Achala Samarasekara - Secretary to the Board (Jan-July) Mrs. Indira Wikramanayake Alexander - Secretary to the Board (July-Dec) Corporate Management Mr. Tuder Wigenayake - Acting General Manager Mrs. G.A.L.Nonis - Deputy General Manager - Construction Mr. Jayampathy Thennakoon - Deputy General Manager - Mech. & Electrical Mr. A.A. Piyadasa - Deputy General Manager - Const. Component Mr. P.A.P.A.Panawala - Deputy General Manager - Finance Mr. G.G.P.Abeysekara - Deputy General Manager - H.R & A Mr. M. W. J. De Silva - Deputy General Manager - Consultancy Senior Management Mrs. P. Karawita - Manager (Construction) Mr. R.A.M.S.Weerasena - Chief Internal Auditor Mr. M. D. Pathmasiri - Chief Engineer (Designs) Mr. C.M.S.R. Fernando - Actg. Chief Engineer (Contracts & Planning) Mr. A.P.Thennakoon - Acting Manager (Const. components) Mr. A.P.K. Manamperi - Acting Manager (Construction) Mr. L.A.L.Liynarachchi - Acting Manager (Const. components) Mr. K.M.T.B.Jayasundara - Acting Manager (Construction) Mr. K.A.Shantha Kumara - Acting Manager (Construction) Mr. A.M.S.T.B.Alahakoon - Acting Manager (Construction) Mr. W.G.A.Gajasinghe - Acting Manager (Construction) ENGINEERS TO THE NATION Vision To be the leading Engineering Enterprise Mission To be a provider of innovative and integrated engineering solutions through excellent consultancy, construction, manufacturing and project management services supported by research and development, delighting the client, with the active participation of a competent and motivated workforce within a prosperous enterprise and there by contribute to national development Goals • Achieve highest levels of technical Standards and professionalism • To be a commercially focused, financially viable and self-sustainable government enterprise • To diversify business activities of the corporation • To develop leading and promote the use of domestic technology and local materials • To be the leading partner in National Development Programmes • Improve the management and human resources of the Corporation Core Values • Clients’ Satisfaction • Integrity • Social Obligation • Employee Satisfaction • Safety • Quality Chairman’s Review It is with great pleasure that I present the Annual Report of the State Engineering Corporation of Sri Lanka for the financial year ended on 31st December 2010. 1. Business Backdrop Having hit the record growth of 8.0% in 2010, Sri Lankan economy envisages to boost its growth in the years to come. With this situation at, the public invest- ment programme of the government progressed with accelerated implementa- tion of many major infrastructure development projects. During the year, the key Focus of the government was the development of roads, besides the other strategic areas such as Ports, power and Energy, Irrigation and Water Supply and Sanitation. Furthermore, the government, other than recon- structing the damaged irrigation facilities and roads due to floods, successfully continued its rural development initiatives such as “Gama Naguma” and “Maga Naguma” as well as the development initiatives under “Uthuru Wasanthaya” whereby the capital expenditure was increased. The construction sector expanded significantly by 9.3 per cent in value added terms in 2010 compared to the lower growth rate of 5.6 percent in 2009. Increased activity in construction was depicted by the growth of domestic pro- duction of building materials by 12.0 per cent during the year. Also the, cement availability grew by 18.1 per cent in 2010 compared to the contraction of 11.1 per cent in the previous year. The increased involvement in the private sector was reflected by the growth of private sector credit for construction purposes by 19.3 per cent during the year. Meanwhile, the government construction projects related to roads, ports, power sector, irrigation and water resources and housing together with other small scale construction also contributed favourably to the growth in value added in the construction sector. The construction sector expanded with the acceleration of the ongoing road development projects such as the Colombo – Katunayake and Southern Expressways, interregional national highways and mega power projects initiated to meet the rising demand for electricity. On the other hand, the con- struction activities were boosted due to Port development projects and the construction and reconstruction work done in newly liberates areas. 2.1. Status of Key Position Platform A new Chairman was appointed during the year 2010 and changes were made to the Board of Directors. Many of the vacancies that came over from the previous year for key positions were filled during 2010. The number of employees for the year 2010 totalled 2343 among them 1659 permanent, 610 coming under contract basis and 74 as casual employees. 2.2. Turnover & Profitability The year 2010 marked a turnover of Rs 5,921 Million; the highest ever recorded for the SEC. The net profit after tax was Rs 86.4 Million. Two mega projects, the Kettarama international cricket stadium and the Pallekale inter- national cricket stadium contributed immensely to the increase the turnover by 56% compared to 2009. 2.3 Progress & Achievement i. Construction Group The construction group recorded a gross profit of Rs 96 Million during the year compared to Rs 203 Million in 2009. The Aluminium factory at Rathmalana performed poorly and recorded a loss of Rs 2 Million compared to a profit of Rs 19 Million during the previous year. ii. Mechanical & Electrical Group The M & E group continued to perform poorly, recording a loss of Rs 59 Million for the year 2010. This situation is expected to improve in future, in line with the restructuring programme related to the group. iii. Construction Components Group The construction components group showed a gross profit of Rs 77 Million compared to Rs 32 Million during 2009. It is a significant increase of 140% in gross profit, compares to the previous year. iv. Consultancy Group The consultancy group generated a significant gross profit of Rs 206 Million for the year 2010, mainly due to the Department of Inland Revenue project. 8 | State Engineering Corporation of Sri Lanka 3. Acknowledgements I extend my grateful thanks to the Board of Directors for their kind co-operation in finalizing a multitude of matters, General Manager, Deputy General Managers of all groups, staff members at all levels, the devoted workforce and Trade Unions, for their commitment in achieving many of the expected results which have sta- bilized the Corporation to some extent during the year under review. I also wish to take this opportunity to pay my gratitude to Hon Minister of Construction, Engineering Services, Housing and Common Amenities for his valuable guidance and advice for SEC to steer clear of many difficulties; his influence to have concurrence of the Cabinet, in matters pertaining to SEC and resolving union issues in a manner beneficial to all concerned. I am also thankful to the Secretary to the Ministry of Construction, Engineering Services and Common Amenities and the Ministry staff for their assistance in matters which SEC was concerned during the year 2010. B.K. Jagath Kumara Perera Chairman State Engineering Corporation of Sri Lanka Annual Report 2010 | 9 Progress Review of the Corporation Turnover & Profit During the financial year 2010, State Engineering Corporation hit a record turnover (net turnover) of Rs: 5,921 million and a net profit (before tax) of Rs: 133 million. The turnover increased by 56% over the previous year. Over the past 5 years, the corporation has achieved a turnover growth of 221% and a net profit
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