A total of 79 million confiscated illegal cigarettes to the value of Rs. 1 billion ensured a higher revenue base for the Government from Ceylon Tobacco Company (CTC) at the end of 2009. CTC contributed a total of Rs. 52.4 Billion to the Government in 2009. Levies, duties and taxes grew to Rs. 49.3 billion as a result of excise-led price increases and an improved brand mix. Provincial Council Tax grew to Rs. 3.1 billion.
The Company’s revenue and contribution to Government taxes and levies benefited from robust law enforcement to minimise the presence of counterfeit and smuggled cigarettes in the Country. With a persistent drive by the authorities 1,890 seizures were made in 2009, resulting in the confiscation of 79 million sticks of counterfeit and smuggled cigarettes valued at over Rs. 1 billion. This was more than double that of 2008.
Sales volume declined relative to 2008 due to the higher excise-led price increases and lower consumer affordability. Ceylon Tobacco Company’s Profit After Tax for 2009 was Rs. 4,115 million benefiting from productivity gains and aggressive cost management initiatives significantly reducing operating expenses.
The Company has made good progress in its flagship Corporate Social Responsibility initiative, the Sustainable Agricultural Development Programme (SADP). The project into its fourth year remains one of the largest CSR initiatives of Sri Lanka. Aligned with the Government’s national priority to alleviate poverty the total number of families enrolled stands at 7,045 of these, 1,475 families are from the Eastern Province. 941 families having achieved self sufficiency targets have successfully exited the Programme.
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