Independence finally for SOEs!

• Cabinet approves Statement of Corporate Intent for strategic state-owned enterprises CEB, CPC, National Water Supply and Drainage Board, Airport and Aviation Services and SLPA 
• Rajitha says move not linked to IMF reforms program

By Himal Kotelawala

Cabinet has approved a ‘concept of statement of corporate intent’ for what it deems strategically important public enterprises. 

The concept, proposed by Finance Minister Ravi Karunanayake, could be applied to selected state-owned enterprises (SoEs) in order to “encourage and facilitate to sustain those enterprises independently without depending on the Treasury.”

The proposal was also signed by Secretary to the Ministry of Finance, Secretaries of line ministries and the chairpersons of the Ceylon Electricity Board, Ceylon Petroleum Corporation, National Water Supply and Drainage Board, Airport and Aviation Services Ltd. and Sri Lanka Ports Authority. When asked to clarify this at the weekly Cabinet press briefing, Minister Rajitha Senaratne said: “They’re going to see whether these can be run as independent, profitable organisations. These are the main strategic entities.” There were reports earlier this week that ahead of International Monetary Fund (IMF) Head Christine Lagarde’s visit to Sri Lanka on Sunday, the Government had entered into discussions with the organisation regarding the possible sale of “non-strategic” State assets including the Hilton Hotel and Lanka Hospitals, among others. 

Minister Senaratne, when asked to comment on this, said that the proposed Statement of Corporate Intent was independent of these discussions.

“We’re not selling. The discussion was to give the management to the private sector and run the hospital (for example) as a public private partnership. We have nothing to do with the IMF team. We will get their advice and do whatever that is suitable for the country,” he said.