The government has introduced a pilot project to make its State Owned Enterprises (SOE’s) more self-sufficient in preparation for the IMF chief’s visit to the island later this month.
Statements of Corporate Intent (SCI) are to be introduced to five State Owned Business Enterprises (SOE’s) in a bid to “enhancing oversight and financial discipline” of SOEs, according to a proposal approved by Cabinet this week.
The five chosen for this pilot project are the Ceylon Electricity Board, Ceylon Petroleum Corporation, National Water Supply and Drainage Board, Airport and Aviation Services and the Sri Lanka Ports Authority. Effective SOEs have been a major concern of the International Monetary Fund (IMF) when it granted the Extended Fund Facility (EFF) of USD 1.5 billion to Sri Lanka in June 2016. This will be disbursed in half-yearly tranches of USD 162 million over three years depending on evidence of the government’s economic performance.
IMF, Managing Director, Christine Lagarde is expected to arrive in Sri Lanka on March 21 to asThe IMF has consistently asked the government to sell to privatize many state enterprises to cut short its debts but Senaratne informed the weekly Cabinet briefing that though IMF advise was welcome, the government would stick to its own program, “We will do what we want”, co-cabinet Spokesperson, Minister Rajitha Senaratne said. sess the current economic state of the country.
“At the end of 2015, the government was looking to sell its shares in ‘non-strategic’ enterprises such as Lanka Hospitals Hotel Developers PLC (Colombo Hilton), Hyatt Residencies, Waters Edge, Grand Oriental Hotel, Ceylinco Hospital and Mobitel to raise money to reduce its debt.”
Add new comment