Govt. moves to restructure SOEs with new bill, special committee

Wednesday, 30 April 2025 00:08 - - {{hitsCtrl.values.hits}}

Taking a decisive step to overhaul the country’s loss-making State-owned enterprises (SOEs), the Cabinet of Ministers at their meeting on Monday gave the green light to appoint a special committee and a landmark draft bill, aiming to restructure and professionalise Government-owned business enterprises long criticised for inefficiency and political meddling.

The draft legislation, titled ‘State Commercial Enterprises Management’ is part of the new Government’s sweeping policy to transform State-run enterprises into economically viable and professionally governed institutions. The initiative seeks to eliminate the financial burden these entities place on the Treasury, while opening doors to local and foreign investment through a structured, accountable framework.

Speaking at the weekly post-Cabinet meeting media briefing yesterday Cabinet Spokesman and Minister Dr. Nalinda Jayatissa pointed out that the Bill would create a legal foundation to permanently insulate these enterprises from political influence.

“Instead Board Members will be selected based on merit and professional qualifications, replacing the longstanding practice of politically driven appointments,” he added.

To further refine the initial draft, Dr. Jayatissa said Cabinet of Ministers approved the formation of a special committee comprising key Ministers tasked with reviewing and enhancing the proposed legislation.

Accordingly, the committee will be chaired by Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando along with Industries and Entrepreneurship Development Minister Sunil Handunneththi, Trade, Commerce, Food Security, and Co–operative Development Minister Wasantha Samarasinghe, and Finance Plan Implementation Deputy Minister Dr. Harshana Suriyapperuma.

“The proposed law marks a significant step in ensuring transparency, efficiency and profitability in SOEs—many of which have long been criticised for draining public funds due to mismanagement and patronage politics,” he added.

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