State Minister of Defence and Mass Media Minister Ruwan Wijewardene says the Sri Lanka Rupavahini Corporation (SLRC) was facing a serious financial crisis.
Wijewardene called a news conference yesterday (11) to express concerns over the President’s decision on SLRC and the impending financial crisis of the corporation.
The Minister pointed out that the SLRC had been losing close to Rs.300 Million annually.
He explained that a sum of Rs. 450 million was requested by SLRC from the Treasury to pay salaries in May, but the request was rejected at a pre-Cabinet meeting as the corporation had not shown promising results. The SLRC required Rs. 200 million a month to break-even.
Wijewardene noted that in the last six months the corporation has been making only Rs. 120 to 140 million and had been facing an average loss of Rs. 60 to Rs 80 million monthly.
He said immediate payables to suppliers were over Rs 100 million.
The Minister explained that the corporation was currently running on advertisement income gained from the screening of the World Cup.
“SLRC will be stuck for cash as it is currently using the World Cup advertisement income to pay salaries,”
Wijewardene said, adding that World Cup related costs were yet to be covered.
He added that a sum of US$1.8 million equal to Rs. 360 million had to be paid to Star Sports as rights payments.
“For this payment a Bank Guarantee has been issued by Bank of Ceylon and is due in December. The bank guarantee will be forfeited as SLRC will be stuck for cash. Once BOC pays this amount SLRC will eventually collapse,” Wijewardene said.
“I am ashamed to say Cheques worth Rs. 2000, 3000 are bouncing back,” he further noted.
Wijegunawardena added that even the Auditor General in his report had questioned whether the corporation could run further and that the SLRC’s financial crisis began in 2014 and had worsened in 2017 mainly due to mismanagement.
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