By: Staff Writer
December 02, Colombo (LNW): The Ministry of Finance’s fiscal performance report highlights significant reforms undertaken by State-Owned Enterprises (SOEs) in 2024. Key initiatives include implementing cost-reflective pricing for electricity and fuel, restructuring the balance sheets of major SOEs, and enabling private sector participation in the petroleum industry.
These efforts have yielded positive results, with 52 key SOEs reporting a combined profit of Rs. 280.7 billion in the first half of 2024, a notable increase from Rs. 193.5 billion during the same period in 2023.
Consequently, the government has adopted a cautious approach to restructuring loss-making SOEs, as explained by Senior Economic Advisor to the President, Duminda Hulangamuwa.
He emphasized the government’s commitment to allowing the private sector to spearhead economic growth while retaining control over strategic sectors critical to public interest.
In June 2024, the Electricity Act No. 36 of 2024 was enacted to enhance operational and financial autonomy within the Ceylon Electricity Board (CEB) across its generation, transmission, and distribution stages.
The Act also aims to increase efficiency, transparency, and accountability in the power sector while promoting private sector involvement.
Additionally, private firm M/s RMParks entered the downstream petroleum market in May 2024, fostering competition and improving service standards for consumers.
Reforms in the State-Owned Banks (SOBs) were also prioritized, with the Cabinet of Ministers approving measures in April 2024 to enhance governance, risk management, and oversight.
A professional committee has been appointed to select independent directors for SOBs through a transparent process, while a specialized oversight unit is being established under the General Treasury’s Department of Public Enterprises.
The government has also taken steps to address the debt burden of SriLankan Airlines Limited (SLA), transferring Treasury-guaranteed debt amounting to USD 210 million and Rs. 31.4 billion to the government’s balance sheet.
Hulangamuwa stated that Sri Lanka needs a national airline but stressed the importance of prioritizing the country’s economic well-being.
Collections from SOE levies and dividends rose to Rs. 14.9 billion in the first six months of 2024, compared to Rs. 13.7 billion during the same period in 2023.
The government continues to carefully analyze the restructuring of SOEs to minimize their burden on the treasury while ensuring sustainable policy frameworks for economic growth.
