October 14, Colombo (LNW): The Sri Lankan government has placed major decisions concerning the restructuring of state-owned enterprises, including SriLankan Airlines and the potential transfer of Mattala International Airport, on hold until after the general election, a report by Daily Mirror claimed citing a senior official.
The election, scheduled for November 14, 2024, has prompted the government to delay actions on key initiatives.
Under the previous administration, the State-Owned Enterprises Restructuring Unit was set up to oversee the divestment of 130 state-run businesses.
Amongst these were significant entities like Sri Lanka Insurance, SriLankan Airlines, Sri Lanka Cashew Corporation, and Sri Lanka Telecom.
However, following the change in leadership under President Anura Kumara Dissanayake, the board of the restructuring unit resigned, leaving its future uncertain, according to report.
When asked about the status of the restructuring unit, a high-ranking official from the current administration stated that no decision regarding the unit or any state-owned enterprise would be made until after the general election.
This pause reflects the government’s decision to approach these issues with caution during the election period.
One of the focal points is SriLankan Airlines, the national carrier, which has been struggling financially.
The official clarified that the airline would not be sold off outright, but its future will be discussed in consultation with a newly appointed management team.
This approach signals a potential shift in strategy, away from privatisation towards a more collaborative model of development.
Additionally, the previous government had planned to transfer operations of Mattala International Airport—a project valued at $209 million and initiated during the tenure of former President Mahinda Rajapaksa—to a joint India-Russia venture.
However, this transfer has been stalled, pending approval from the Attorney General’s office for the commercial agreement.
Beyond these major entities, other significant infrastructure projects are also in limbo. The construction of the Colombo-Ratnapura expressway and stages three and four of the Central Expressway, which connects Kurunegala to Kandy and Dambulla, remains uncertain.
Progress on the Kadawatha-Meerigama stretch of the Central Expressway has been delayed due to ongoing negotiations with the EXIM Bank of China, which has not yet disbursed funds following the country’s recent debt restructuring efforts.
Whilst the government acknowledges the importance of these initiatives, its current focus is on stabilising the political climate through the upcoming election.
The decisions regarding these critical state-owned enterprises and infrastructure projects are expected to be revisited after the elections, with further clarity on the future direction of the country’s economic and development policies.
