Finance Ministry to set up SOE restructuring unit

In an attempt to improve the overall performance of the State Owned Enterprises (SOEs), the Cabinet of Ministers, at its meeting on Monday, approved the establishment of a new unit to restructure troubled Government-operated agencies.

The move was an immediate realisation of a proposal from the recently approved mini-Budget, for which the Government allocated a total of Rs. 200 million for the implementation of it.

It was proposed to re-activate the Statement of Corporate Intent (SCI) process for 50 key SOEs, excluding the Ceylon Electricity Board (CEB), the Ceylon Petroleum Corporation (CPC), and the national carrier— SriLankan Airlines, as they are under different efforts to restructure to closely monitor the set targets.

The objective of the new unit is to help to identify ways to reduce the financial burden on the Treasury and to provide necessary guidance and support in the restructuring process of the SOEs.

“The performance of State-owned commercial enterprises has not been satisfactory for a long time and some SOEs are incurring losses due to various reasons,” a statement of weekly Cabinet Decisions issued by the Government Information Department noted.

It also added that this situation has led to severe pressure on the Treasury, and thus an alternative mechanism should be introduced for the efficient and effective functioning of Government-operated businesses.

The proposal to this effect submitted by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation, and National Policies Minister was approved by the Cabinet of Ministers.