Government new strategy: Liquidation and turnarounds for SOEs
View(s):A Special Liquidation Unit (SLU) established under the Ministry of Finance is now overseeing the winding up of 33 inactive State-owned Enterprises (SOE) out of 72 institutions listed for the restructuring process.
The government is moving forward with the Public Commercial Business (PCB) Act to govern SOEs while continuing to focus on improving efficiency, governance, and transforming SOEs from “fiscal burdens” to “value creators”, a senior official of the Finance Ministry told the Sunday Times Business.
For major active SOEs, such as SriLankan Airlines, the 2026 policy emphasises internal restructuring and 5-year turnaround plans to return them to profitability, rather than immediate privatisation, he disclosed.
The proposed State Owned Enterprises legislation and the Public Financial Management Act will together provide an overarching legal framework for the governance of SOEs, going forward.
The government is also in the process of establishing a holding company that will eventually take ownership of government owned corporate assets, which will be state-owned and accountable to the Ministry of Finance
The State-Owned Enterprise Restructuring Unit (SOERU) established by the previous government has been replaced by the SLU, he said adding that a new administrative system is now in place. The immediate, aggressive divestment strategy was substituted by a more selective approach focused on liquidating 33 dormant entities, improving efficiency, and internal turnarounds for major, active SOEs.
Although Cabinet approval dated May 15, 2023 mandated the establishment of a holding company to absorb 72 institutions for restructuring in line with Principle 2 of the SOE Reforms Policy, no such holding company had been created up to December 31, 2024 by this unit, an audit report revealed.
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