25. HEDGING RESERVE   Close Window  
(All amounts in Sri Lanka Rupees millions)
  2003 2002
At beginning of year (1,146)
Cash flow hedges    
- Foreign currency translation difference (208) (829)
- Income Statement charge (Note 5) 609 571
At end of year =======
(a) The Company's risk management objective is to minimise losses on foreign currency translation relating to the repayment of loans denominated in foreign currency. This is accounted as a cash flow hedge.

(b) The policy for hedging each type of forecast transaction is stated in Accounting Policy S.

(c) The future transactions are forecasted for a period of five years.

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