The Sri Lankan Government has unveiled a transformative approach to managing State-Owned Enterprises (SOEs), advocating for a modernized model that integrates public-private partnerships (PPPs).
Speaking at the Sri Lanka Economic Summit, organized by the Ceylon Chamber of Commerce, Deputy Finance and Planning Minister Dr. Harshana Suriyapperuma emphasized the need to move beyond traditional business structures and harness both public and private sector strengths to drive economic growth, optimize efficiency, and unlock untapped potential.
Drawing insights from countries that have successfully balanced State participation with private sector involvement, Dr. Suriyapperuma highlighted that the debate should not solely focus on whether the Government should run businesses but rather on the effectiveness and governance of SOEs.
He noted that State intervention remains vital in sectors where private entities are hesitant to invest, particularly in infrastructure and essential public services. However, once these industries mature and attract private investment, continued Government competition may no longer be necessary.
“Governments should operate businesses that are efficiently managed and serve areas where private involvement is limited or unfeasible. But as these industries evolve and private investors enter, we must reassess our role,” he stated.
The Minister underscored the potential of PPPs in enhancing the efficiency and scalability of SOEs. By allowing private entities to infuse capital and expertise while retaining Government oversight, these partnerships could improve competitiveness and ensure long-term sustainability.
He also pointed out that some SOEs, despite being profitable, have untapped opportunities that could be leveraged through private sector participation.
Certain SOEs can remain under Government control, but others would benefit significantly from private investments. Our goal is to explore how these entities can better contribute to economic progress, expand into new markets, and attract capital,” he added.
Recognizing the challenges of implementing reforms, particularly due to skepticism from employees and other stakeholders, Dr. Suriyapperuma reassured that the Government is committed to national interests and has a clear mandate for transformation.
He stressed that reforms will prioritize national objectives over sectoral or individual interests, making future negotiations with stakeholders more constructive.
“The landscape has changed. People expect us to find the best solutions for the country rather than catering to narrow interests. This confidence gives us the leverage needed to implement necessary changes,” he stated.
The Government’s strategy will remain flexible, acknowledging that while some SOEs should remain under State control, others may require restructuring or privatization to enhance productivity and profitability.
Additionally, the administration is keen on creating new enterprises to harness untapped resources, with an emphasis on sustainable development and innovation.
Dr. Suriyapperuma rejected the notion that SOEs are a burden, instead positioning them as key drivers of national growth. “Whether they remain State-owned, engage in PPPs, or transition to private ownership, our goal is to maximize their contribution to the economy,” he emphasized.
Additionally, he introduced a potential fourth model: Public-Private-People Partnerships (PPPPs), which would involve community stakeholders in the decision-making process. This model aims to ensure that economic benefits are widely distributed, fostering inclusive development and a more participatory approach to governance.
With a renewed focus on strategic partnerships, efficiency, and innovation, the Government is poised to reshape the role of SOEs, positioning them as vital engines of economic progress in Sri Lanka.
