By: Staff Writer

Colombo (LNW): The government has already initiated the preparation of a restructuring plan for public enterprises. President Ranil Wickremasinghe has made a clear policy announcement to the nation recently that the state authorities are serious about long-term economic reform.

He also categorically stated that Sri Lanka is open for businesses. This could boost investors’ confidence and help attract more foreign direct investment (FDI) into the debt ridden country.

Additionally, the government expects the chief officers of these enterprises to be committed to improving their performances. If they fail to meet the annual targets assigned to them, we will not hesitate to replace them with more suitable candidates, he added.

There are currently 430 public enterprises operating in 33 sectors of the economy. These enterprises employ 6 percent of the Sri Lankan population.

However, many of these enterprises have garnered monopolistic positions in the market, hindering private investment.

Price fixing, inefficient management, and poor entrepreneurship have weakened public finances, turning these institutions into national burdens that are dependent on the taxpayer.

Notably, entities like the Ceylon Petroleum Corporation, Ceylon Electricity Board, and Sri Lankan Air Lines have incurred significant operating losses, equivalent to 1.6% of the country’s GDP in 2021

Complementing COMMPLIMENTS the president’s directive to restructure SOEs, former finance minister Ravi Karunannayake out lined action plan of upcoming reforms adding that public enterprises in strategic sector links to day to day activity of the people are set to undergo reforms and others engaged in commercial activities face performance optimization.

He emphasized that according to official data 39 of the 52 strategically important public institutions are making profits while 13 of them are still making losses.

The losses incurred by 13 public institutions currently amount to Rs 1,029 billion while the profits made by the 39 enterprises are at Rs 218 billion, he said.

He also highlighted that the annual loss made by the public institutions is more than Rs 811 billion, adding that only Rs 28 billion have been paid by the profit-making public institutions as taxes to the treasury .

The restructure tool is used to improve their financial and operational performance and to make them operate on the strength of their balance sheets, he pointed out adding that measures were also taken to reduce the flow of public funds to SOEs.

He suggested that Sri Lanka should follow the Temasek model of Singapore which is operated on a competitive basis, where the Government has no intervention in business.

The professionals running the business raising the revenue and make profits as same as in a private company and the work principles is set right from the beginning to be competitive.

He categorically stated under this set-up privatization in a partial or full sale of assets – is not the only option for SOE reform.

For instance, there are other options like the vesting of performance and management in private sector contract, Public-Private Partnerships (PPPs), holding companies, listing on the stock market, Employee Stock Ownership Plans (ESOPs), etc.

Therefore, enhancing the low level performances of SOEs by optimization procedure is essential whilst ensuring transparency and accountability at this difficult juncture of trying to recover from economic crisis, he added.

The government’s plan to restructure the SOEs on the directions of President Ranil Wickremsinghe is aimed at self-financing without depending on the treasury and it will be a reality soon, Mr Karunanayake opined.

He assured that the Government had made a firm decision to have major controlling rights of the non-strategic enterprises in the optimaisation or commercialization process and dismissed claims of total privatization.

“We have to walk the talk and fulfill Sri Lanka’s obligation of IMF commitments relating SOE reforms within six months and the Government has short-listed transaction advisors to assist in the divestiture of four SOEs less than three months, he said.

They are Sri Lanka Insurance Corporation Ltd., Hotel Developers Lanka Ltd (Hilton Hotel Colombo), Canwill Holdings Ltd (Grand Hyatt Hotel), and Litro Gas Lanka Ltd including Litro Gas Terminals Ltd (LPG retailing).

Cabinet approval will be sought of a comprehensive strategy to restructure the balance sheets of the Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB), the Road Development Authority, and Sri Lankan Airlines by June 2023.

Prompt publication of audited financial statements will be made for all 52 major SOEs while prohibiting of new foreign exchange borrowing by nonfinancial SOEs which have foreign currency debt amounting to US$ 45.5billion with limited foreign exchange revenues.

He noted that Sri Lanka has showed successful result s from the privatization of several state entities during the periods of late 1980s to around 2004.

At least 43 commercial entities were privatized and , from 1995 to 2004 saw the privatization of larger, more complex sectors such as telecommunications, gas, and airlines took place .

In fact, the much-hailed Sri Lanka Telecom (SLT) privatization was carried out during this period he revealed adding the such enterprises has undergone performance optimization making more profits rather than in state control.

He noted that the SOE reforms envisaged are expected to contribute towards higher economic productivity by reducing market distortions, increasing organisational efficiency and improving the quality of service to the public.

1. Central Bank says it’s gross official reserves have risen to around USD 3 bn: Analysts point out that is because of approximately USD 500 mn of “hot-money” inflows by investors who are making phenomenal returns on the back of the LKR appreciation and over 25% interest rates for T-Bills & Bonds: analysts also say the CBSL Forex Reserve now basically consists of Central Bank SWAPs of USD 2,150 mn + IMF loan tranche of USD 333 mn + “hot money” investments of USD 500 mn.

2. President Ranil Wickremesinghe says although all political parties in Parliament are united, none of them currently possess a 50% voter base: emphasizes the need for unity among the parties to steer the country towards recovery from the ongoing economic crisis: asserts the majority of people have lost faith in elections and politics.

3. Japanese embassy in Colombo says resumption of loan projects will depend on the progress of the SL debt restructuring process: statement seems to be in response to the Cabinet’s approval to proceed with the resumption of the USD 2.2bn LRT project to be financed by JICA.

4. IMF Deputy Managing Director Kenji Okamura says the Sri Lankan economy is showing tentative signs of improvement, in part due to the implementation of critical policy actions: warns economic recovery remains challenging: also says it is essential to continue the reform momentum under strong ownership by both the authorities and the Sri Lankan people.

5. Minister of Justice Dr. Wijeyadasa Rajapakshe reveals the Office of Missing Persons has concluded inquiries into 3,170 complaints: also says the OMP’s initial productivity was unsatisfactory, but steps have been taken to improve the process.

6. Former Governor of the Northern Province and TMTK MP CV Wigneswaran, says he will seek support from Hindu religious organisations in India to counter the systematic Buddhistisation activities in the North & East.

7. Tea Board Chairman Niraj de Mel claims the tourism sector has not adequately pushed local tea to tourists: says the hotel industry lacks knowledge about the 157-year-old Ceylon Tea, a beverage known around the world.

8. CEB proposes tariff reduction of 28% for over 1.7 mn domestic electricity consumers who consume less than 30 units per month: the present electricity bill of these low consumption consumers is around Rs.751: following the proposed revision on 1st July, the bill is expected to reduce to around Rs.543: prior to the tariff hikes, it was Rs.105.

9. Civil rights activists raise concerns over the recent arrest of controversial female stand-up comedian Nathasha Edirisooriya, over an alleged defamatory comment made by her related to Buddhism, under the Int’l Covenant on Civil and Political Rights (ICCPR) legislation.

10. Pakistan Cricket Board is said to be upset at the Sri Lankan Cricket Board expressing its desire to host the entire Asia Cup tournament: declines offer to play an ODI bilateral series in Sri Lanka.

By: Staff Writer

Colombo (LNW):The Directorate of Revenue Intelligence (DRI) has cracked down on a sophisticated syndicate involved in gold smuggling via the sea route from Sri Lanka ring.

India has recovered 32 kilograms of gold dumped at sea while being smuggled to Sri Lanka.The gold was recovered in a joint operation involving the Coast Guard, Directorate of Revenue Intelligence (DRI) and Customs.

The gold, valued at Indian Rs 20.2 crore, was being smuggled from India to Sri Lanka, an official release said.

The seizure was a result of a specific input from the DRI regarding smuggling of contraband between Sri Lanka and India, following which a joint operation was launched by Indian Coast Guard and DRI on May 30.

Underwater divers salvaged the precious metal from under the sea after the smugglers threw it aboard while being pursued by officials of the agencies.

A joint operation by the Indian Coast Guard, Directorate of Revenue Intelligence and Customs has foiled an attempt to smuggle gold bars weighing 32.689kg into India, via the sea route from Sri Lanka.

Launched on Tuesday 30th May, this operation was carried out based on specific input from DRI regarding the smuggling of contraband from the island nation to India.

In anticipation of the smuggling attempt, Indian agencies maintained close surveillance of fishing vessels operating in the Gulf of Mannar and those near the India-Sri Lanka International Maritime Boundary Line (IMBL).

The agencies apprehended two boats – a suspicious boat approaching the Mandapam fishing harbour in Tamil Nadu’s Ramanathapuram district and another suspicious vessel south of Mandapam.

The sea route between northern Sri Lanka and the southern districts of Tamil Nadu, India, is highly porous and has a lot of fishing activity.

In a matter of a few hours and a few dozen kilometres, it is possible to cross over the IMBL and reach the waters of the other side.

The first boat attempted to evade the agencies and then dumped the consignment overboard before its three-member crew was apprehended by the agencies.

Upon interception, the second boat was said to have 21.269 kgs of smuggled gold and its two-member crew was taken into custody.

To recover the consignment that was dumped overboard by the first vessel, the Indian Coast Guard launched a diving operation at the site and recovered the gold consignment from the seabed, on Thursday. It contained gold bars weighing 11.6 kg.

The entire seized consignment is valued at Rs. 20.20 crore or $2.5 million. The seized contraband and suspects are in DRI custody for legal action.

Litro Gas Lanka, a prominent supplier of domestic Liquefied Petroleum (LP) gas in the country, has made a significant decision to reduce the prices of its products. The price reduction will come into effect from midnight tomorrow, June 4, according to the chairman and CEO of Litro Gas, Muditha Peiris.

This move is expected to have a positive impact on consumers, as it will result in a substantial reduction in the price of a 12.5kg gas cylinder. Currently priced at Rs. 3,638, the cost of the cylinder is anticipated to decrease by approximately Rs. 400.

At least 238 people have been killed and 650 are injured in a crash involving three trains in India’s eastern Odisha state, officials say.One passenger train derailed and its coaches fell on to the adjacent track where they were struck by an incoming train on Friday evening. A freight train was stationary.

The death toll is expected to rise, as many are still trapped in the wreckage.

The cause of India’s worst train crash this century is not yet clear.

Officials said several carriages from the Shalimar-Chennai Coromandel Express derailed at about 19:00 (13:30 GMT) in Balasore district, hit a stationary goods train and several of its coaches ended up on the opposite track. 

Another train – the Howrah Superfast Express travelling from Yesvantpur to Howrah – then hit the overturned carriages.

“The force with which the trains collided has resulted in several coaches being crushed and mangled. We are trying to cut through the wreckage to reach the passengers. We also have to be careful to not hurt those alive,” Atul Karwal, chief of the National Disaster Response Force (NDRF) told news agency ANI. 

He said this was “the third deadliest crash in the history of Indian railways”. 

More than 200 ambulances and hundreds of doctors, nurses and rescue personnel were sent to the scene, the state’s chief secretary Pradeep Jena said.

Sudhanshu Sarangi, director general of Odisha Fire Services, had earlier said 288 had died.

Railway Minister Ashwini Vaishnaw is at the site of the accident and Prime Minister Narendra Modi is expected to visit the injured in the hospital later on Saturday.

One male survivor said that “10 to 15 people fell on me when the accident happened and everything went haywire. I was at the bottom of the pile. 

“I got hurt in my hand and also the back of my neck. When I came out, I saw someone had lost their hand, someone had lost their leg, while someone’s face was distorted,” the survivor told India’s ANI news agency.

A day of mourning has been announced in the state.

bbc