Govt. lists eight SOEs with over Rs. 3 b in losses for restructuring in P’liment

Saturday, 11 May 2013 00:00 - - {{hitsCtrl.values.hits}}

By Ashwin Hemmathagama Our Lobby Correspondent

Eight public enterprises that have made over Rs. 3 billion in losses will either be liquidated or restructured under public-private partnerships, Parliament was told yesterday.

Failing to find viable solutions will lead these establishments to a wind up with Voluntary Retirement Schemes (VRS) being provided for the employees in a few cases, with the remainder given the opportunity to get absorbed into other State ventures.

According to Finance Deputy Minister Sarath Amunugama, these ventures are Janatha Fertilizer Company Ltd., Hingurana Sugar Industries Ltd., Kantale Sugar Industries Ltd., Sri Lanka Rubber Manufacturing Export Company Ltd., Lanka Salusala Ltd., Lanka Fabrics Ltd., Co-operative Wholesale Establishment and State Co-operative Wholesale Establishment Company.

“Janatha Fertilizer Company Ltd. has 32 employees and has experienced a total loss of Rs. 1.35 million. The land that housed warehouses will be given to the Urban Development Authority to be used in providing dwelling for the low income earners. This venture will be liquidated and the employees will be given a VRS or the opportunity to join the other two State-owned fertiliser companies,” the Minister stated in response to a question for oral answers raised by UNP MP Ravi Karunanayake.

Hingurana Sugar Industries has 10 employees and has experienced a loss of Rs. 1,734 billion but remains functional since 2007 under Galoya Plantation Ltd. According to the Minister Hingurana Sugar Industries will also get liquidated soon. Kantale Sugar Industries Ltd. has 41 employees and has experienced a loss of Rs.9.7 million, for which the Government is looking for a strategic investment. Sri Lanka Rubber Manufacturing Export Company Ltd. has two employees and has a loss of Rs.133.4 million in its accounts. The factories in Mawanella and Baduraliya are already given to a private business for a period of 30 years and the remaining Elpitiya factory awaits a suitable private sector business to take over.

Lanka Salusala Ltd., now with 253 employees and an accumulated loss of Rs. 834 million, will get restructured to use handloom, which will attract tourists. Lanka Fabrics Ltd. has no employees but carries a loss of Rs. 15.77 million. According to Minister Amunugama it will be liquidated.

Co-operative Wholesale Establishment (CWE) and State (Co-operative Wholesale Establishment) Company have 311 and four employees respectively. CWE has an accumulated loss of Rs. 926 million and State Co-operative Wholesale Establishment Company has an accumulated loss of Rs. 11.2 million. The Minister is looking at restructuring both these establishments.