SL should curtail growing pressure by SOE's on the island's economy- IMF

COLOMBO (News 1st); Several global reviews have been conducted on Sri Lanka after the nation obtained a Special Drawing Rights Facility (SDR) from the International Monetary Fund (IMF) in 2009.

During such reviews, the IMF had pointed out that Sri Lanka should minimize the pressure extended by State-Owned Enterprises (SOE) on the country's economy.

Although various views are being expressed on obtaining IMF assistance, the Sri Lankan Government is now taking action with regard to State-Owned Enterprises.

During the 2022 budget speech, the Minister of Finance Basil Rajapaksa pointed out that the Government has invested more than Rs. 670 billion in State-Owned Enterprises.

He said this was in addition to Rs. 75 billion spent on maintaining them.

Rajapaksa told in his budget speech that most of the State-Owned Enterprises amounting to approximately 300 are not profitable.

The newspaper 'Daily Mirror' has reported that the committee set up to look into State-Owned Enterprises has requested the Treasury to suspend state assistance to SOE's.

The committee had said this would potentially open the path to end the reliance on taxpayer-funded money to sustain those firms which have become a bane on the country and its people.

Secretary to the Treasury and Ministry of Finance, S.R Attygalle told News 1st that a decision has been made to avoid releasing funds for State-Owned Enterprises in excess of the amount approved by Parliament.

He said the move is expected to promote efficient management that would allow SOEs to at least avoid making losses or profits.