SLFP-SLPP slam UNP for lossmaking SoEs

• Says Govt.’s mismanagement reduced profits of SoEs
• Claims UNP attempted to privatise SoEs
• Pledges to increase SoE profitability under a GR administration  

MP Dayasiri Jayasekara

By Nuwan Senarathna 

The Sri Lanka Freedom Party (SLFP) yesterday severely criticised the United National Party (UNP) for failing to turn around loss-making State-Owned Enterprises (SoEs), including the Ceylon Electricity Board (CEB) and SriLankan Airlines, despite numerous promises to do so.

Speaking to media at the SLFP and Sri Lanka Podujana Peramuna (SLPP) joint media centre, SLFP General Secretary MP Dayasiri Jayasekara claimed lossmaking SoEs were one of the main reasons for slow growth and their losses had increased steeply in the past few years despite numerous promises by UNP ministers to effect a turnaround.

“A significant number of Cabinet portfolios were kept by the UNP but they were unable to find solutions to increase profits of key SoEs. They failed to identify the root cause of lossmaking SoEs and take remedial measures. Mismanagement led to this. If they had proper plans this could have been prevented,” Jayasekara said.

Jayasekara charged the UNP was incapable of managing SoEs due to their views on State-run business. He claimed the UNP policy was focused on privatising SoEs and this had led to a reduction in their productivity.

“The UNP always wanted to privatise State assets. This was done even during President Ranasinghe Premadasa’s time. They are yet to come out of that mindset and look for a way to increase the productivity of SoEs though better management and winning the trust of employees.”

Jayasekara claimed the UNP intentionally mismanaged SoEs to create an opportunity to privatise them. He argued most lossmaking SoEs could have been converted into profitmaking entities if they had been supported in the right way and their issues resolved in a timely manner.

“The biggest reason for CEB’s losses was emergency power purchasing. But that could have been prevented if they had proper plans and implemented them so there was enough generation to meet increasing demand. Government negligence cost millions of taxpayers’ money for emergency power purchasing and this was allowed to continue year after year with no proper solution given by authorities.”

Jayasekara alleged emergency power purchasing had created an opportunity for private power generators to increase their profits. According to Jayasekara, emergency power purchasing raised suspicions of the credibility of the Government’s decision-making process.

“We have reasons to believe that some members of this Government intentionally created a power shortage by not implementing the long-term generation plans to open doors to emergency power purchasing. These short-sighted decisions cost millions of taxpayers’ money.”

He claimed the lapse in management led to losses of SriLankan Airlines, which Jayasekera argued could have been turned into a profitmaking SoE. Jayasekara also contended State-owned business entities could be transformed to profitmaking businesses that would contribute to increasing the State’s income. 

He argued that if Gotabaya Rajapaksa were elected, he would take necessary measures to increase the productivity of SoEs and increase their profits.