Sri Lanka driving SOE reforms through necessary legislation
The Government is accelerating its process of State-Owned Enterprise (SOE) reform through the introduction of a Public Commercial Businesses Bill that will establish a legal framework to ensure effective management, financial discipline, and transparency.
The Cabinet of Ministers has provided policy endorsement to the draft bill which is being done under the direction of the Public Enterprises Department.
The legislation will aim to rein in corruption and concentrate governance within the SOE sector. The Sunday Times Business on February 16, 2025 divulged details of the proposed legislation.
In the past, SOEs have been managed by legislation such as the Government-Sponsored Corporations Act and Finance Act No. 38 of 1971.
The forthcoming reforms will aim to refresh the framework with new structural tools including the formation of a holding company to enhance corporate governance and strip the Treasury of preferential treatment and guarantees.
The bill calls for the appointment of professional experts to the boards of SOEs to ensure greater accountability. A ministerial committee, led by Labour Minister Anil Jayantha Fernando and including Ministers Sunil Handunnetti and Wasantha Samarasinghe, has been tasked with examining the bill and making recommendations.
IMF Mission Chief for Sri Lanka Evan Papageorgiou stated during an April 29 virtual media briefing that restructuring of SOEs is at the centre of the economic recovery strategy.
He further stated, “The authorities are developing a medium-term strategic plan to restore SriLankan Airlines’ operational sustainability and retire its legacy debt.”
The 2025 national budget has Rs. 20 billion earmarked to pay back SriLankan Airlines’ loan, and an advisor to financial affairs already been appointed for international bond restructuring.
Few of the high-profile restructurings have been put on hold, including SriLankan Airlines, Mattala Airport, Hilton Colombo, Litro Gas, Sri Lanka Telecom, etc. The previous list was 430 SOEs, 50 of which were to be restructured or privatised by March 2023.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!