Finance Ministry to sign statements of Corporate Intent to enhance contribution to nation’s GDP

Finance Ministry to sign statements of Corporate Intent to enhance contribution to nation’s GDP

Written by Keshala Dias

14 Mar, 2017 | 10:14 pm

The Ministry of Finance is set to sign Statements of Corporate Intent with selected state-owned business enterprises, with the aim of enhancing their contribution to the nation’s Gross Domestic Product (GDP).

The Statement of Corporate Intent is a tripartite Memorandum of Understanding to be signed by Secretary to the Ministry of Finance, Secretary of relevant line Ministry and the Chairman on behalf of the Board of Directors of the respective state-owned business enterprises.

Initially, five state owned business enterprises namely, the Ceylon Electricity Board, the Ceylon Petroleum Corporation, the National Water Supply and Drainage Board, Airport and Aviation Services LTD and Sri Lanka Ports Authority have been selected to sign this Statement of Corporate Intent.

The move which has been approved by the Cabinet on February 28, is expected to improve financial efficiency through improved corporate practices, introduce innovative financing, maintain strong and prudent financial management, offer exposure to competitiveness and international best-practices and create effective human resource management while enhancing public accountability.

The MoUs include key performance indicators link to Corporate Plan, Action Plan and Annual Budget of state owned business enterprises for a period of three years, stating from year 2017.

The Ministry of Finance says, on the success of the implementation of this priority programme, the government is expecting to extend this move to other state-owned enterprises as well. There are more than 350 state owned enterprises that can be identified as corporations, banks, academic institutions, statutory boards and public companies.

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