Government to improve financial disclosure of heavily loss making SOEs - Lanka News Web (LNW)

Government to improve financial disclosure of heavily loss making SOEs

Reflecting on the ability of the State Owned Enterprises (SOEs) to face any risks which may materialize amidst changing global and domestic economic circumstances, Government plans to improve financial disclosure of SOEs in the time ahead.

A mechanism will be put in place to monitor key performance indicators (KPIs) as set out in the Statements of Corporate Intent (SCI), already signed with major five SOEs, and extending the same to ten more SOEs in the near future, official sources said.

Successive Sri Lankan governments have pumped in a colossal Rs.1, 150 billion for the upkeep of the strategically-important State-owned Enterprises (SOEs) up to 2017, a top official of the Finance Ministry revealed.

Sri Lanka has about 400 SOEs of which 55 are considered strategically-important and are generally referred to as State-Owned Business Enterprises (SOBEs).

He said during 2017 alone, the General Treasury had to inject Rs.41 billion to these 55 SOBEs. In 2017, they recorded a turnover of Rs.1, 755 billion, which is about 13 percent of Sri Lanka’s Gross Domestic Product (GDP), while their total asset base grew 13. 6 percent over the previous year—about 57 percent in GDP terms.

But only 39 of these SOBEs made profits, which amounted to Rs.136 billion, while the remainder 16 made a cumulative net loss of Rs.87 billion, he added.

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