Sri Lanka's most profitable privately held bank, also provided Rs. 67.0 mn for income tax payable on its bond trading profits, after the government went back on its word, and demanded back taxes on secondary market transactions from April 1, 2003.
Though the Bank made this provision for back taxes as a prudential measure, negotiations will continue with the authorities aimed at further reducing this tax liability, the bank’s Deputy General Manager – Finance & Planning, Ranjith Samaranayake said.
The bank's primary dealer arm posted a Rs. 6.2 mn loss in 2004 as against a Rs. 264.3 mn profit reported during the nine months ending Sept. 2003. A rise in government treasury yields during the first half of t