Dividend dependent on Sri Lanka’s Super Gain Tax

Ceylon Tobacco Company’s (CTC) sales in Sri Lanka fell by 11 percent last year, according to a Colombo Page story quoting a CTC financial statement.

At the same time, its government contributions during the 12 months to the end of December fell by four percent to Rs73.6 billion.

The downturn seems to have been partly the consequence of competition from products in the ‘non-regulated’ segment, and partly the result of an increase in bidi volumes, which, according to Sri Lanka Customs statistics, have grown by almost 200 percent since 2008 and which now account for about 42 percent of total tobacco consumption in the country.

Meanwhile, CTC said it was awaiting further clarification on the base and application of the one-off Super Gain Tax announced as a part of the government’s interim budget proposals on January 29 before determining its impact on cash flow and its ability to distribute a final dividend for 2014.