Despite a substantial 50% increase in turnover during the first quarter of the current financial year, The Finance Co. Ltd., the Ceylinco subsidiary which is a major player in the group, had seen a slight fall in profitability according to an interim statement now with shareholders.

Turnover during the quarter under review at Rs. 647.3 million was up from Rs. 430.4 million a year earlier. The net trading profit for the period was Rs. 8.8 million, down from Rs. 10.1 million during the first quarter of the preceding financial year. Other income of Rs, 2 million (Rs. 1.4 million a year earlier) compensated partly and the pre-tax profit of Rs. 10.8 million was down marginally from Rs. 11.5 million earned a year earlier.

With the company not liable to tax, this remained the bottom line for the quarter under review. With Rs. 3 million unappropriated profit brought forward, Rs. 13.8 million was available for appropriation as at June 30, 1998.

The Finance Co. Ltd., founded in 1940, is the oldest established finance company in the country. Since it moved out from Ceylinco House following the building being destroyed in a terrorist attack, it has relocated in its own headquarters building at Duplication Road, Bambalapitiya.