November 06, Colombo (LNW): Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe announced that Sri Lanka’s Treasury has received a substantial income of Rs. 227 billion from State-Owned Enterprises (SOEs) this year, underscoring the continued financial contribution of public-sector institutions to the national economy.
Addressing recent reports that pointed to uneven performance among SOEs in the first half of 2025, the Deputy Minister emphasised that the revenue generated represents value created through public capital and market-driven operations.
“This is wealth created for the people, reflecting the productivity and efficiency of our state enterprises,” he said. “Although overall profits have declined slightly from last year, that reduction stems mainly from the non-adjustment of electricity tariffs and the foreign exchange gains recorded by SriLankan Airlines in the previous year.”
Abeysinghe acknowledged that some state entities continue to face difficulties, largely due to past mismanagement and corruption. However, he stressed that an extensive restructuring effort is underway to restore these institutions to profitability.
“The process to revitalise underperforming enterprises has already begun, and we expect Treasury revenue from these entities to strengthen further in the coming years,” he stated.
Rejecting suggestions that state assets should be transferred to private hands, the Deputy Minister reiterated that the government’s policy framework promotes a balanced economic model that integrates state, private, and cooperative sectors.
“Those who argue that the government should not engage in business are misleading the public,” he said. “Around the world, even in advanced economies such as China, Vietnam, South Korea, Singapore, and India, state-owned enterprises continue to play a central and strategic role in national development.”
He further explained that the purpose of state ownership is not merely to maximise profit but to enhance economic and social outcomes, especially in sectors where markets function inefficiently.
“Sri Lanka has 52 carefully managed state-owned enterprises identified as strategic. Their goal is to strengthen the economy and serve the people, not to drain public resources,” Abeysinghe added.
The Deputy Minister also revealed that the government is in the process of drafting new legislation aimed at improving the governance of state enterprises, reducing political interference, and ensuring that board appointments are based on merit and professional competence.
“Our government is committed to ending waste and corruption. The claim that these institutions waste taxpayers’ money is completely unfounded,” he remarked.
Highlighting the performance of the public sector, Abeysinghe noted that SOEs collectively earned profits of Rs. 427 billion in 2023 and Rs. 538 billion in 2024.
“Imagine if these enterprises were privatised — all that income would flow to a handful of private investors, and essential services would lose price competition, ultimately hurting the public,” he argued.
He went on to clarify that in 2025, institutions such as the Ceylon Electricity Board and the Ceylon Petroleum Corporation maintained stability without imposing additional burdens on citizens.
“Contrary to the false claim that the country is collapsing due to SriLankan Airlines, the Rs. 20 billion allocated to the airline came from these profits — not from taxpayers’ money,” he concluded.
