September 04, Colombo (LNW): The Cabinet has approved a proposal to formally dissolve 33 dormant state-owned institutions as part of a broader programme aimed at overhauling Sri Lanka’s bloated public sector and streamlining government expenditure.
The closures will take place in two stages, targeting a diverse set of entities—including statutory bodies, state corporations, and government-owned companies—that have long ceased to function in any meaningful capacity.
Many of these entities, originally created to provide essential services or support economic development, have since lost relevance or financial viability, with some operating in name only.
According to government sources, the continued upkeep of these non-functioning institutions has placed an avoidable strain on public finances, with no corresponding benefit to the economy or the public. The decision to shut them down comes amidst an ongoing restructuring agenda aimed at improving efficiency and redirecting resources towards more impactful areas.
The formal winding-up process will be overseen by a newly established Special Closure Unit within the Ministry of Finance. This unit will be responsible for ensuring that all administrative, legal, and financial matters relating to the dissolutions are handled in an orderly and transparent manner.
The proposal was submitted by the President in his capacity as Minister of Finance and received Cabinet endorsement following internal assessments and consultations with the respective institutions.
At a media briefing held following the Cabinet meeting, Cabinet Spokesman Minister Dr. Nalinda Jayatissa emphasised that the closures would not result in any job losses, noting that these entities have had no active staff for some time. In several cases, he said, the only physical evidence of their existence were signboards on now-vacant premises.
He added that the government had engaged in discussions with the relevant administrative bodies prior to the decision and stressed that the closures were long overdue. “This is about closing files, not cutting jobs,” he remarked, underlining the purely procedural nature of the move.
