State-Owned Enterprises Surge to Profitability

COLOMBO (News 1st); Sri Lanka's State Finance Minister Shehan Semasinghe says that the turnaround of state-owned enterprises from a loss of Rs. 743 bn in 2022 to a profit of Rs. 456 bn in 2023 in Sri Lanka is significant.

However, he noted that continuing on the divestment process of selected SoE’s is vital to enhance private sector contributions, aligning with global economic challenges.

This allows the government to focus on its core responsibilities and ensuring taxpayer money is utilized effectively and focus on essential investments on public services such as healthcare, education, agriculture, infrastructure development and so on which will improve the overall quality of public services.

The State Minister said that restructuring and divestment of SoEs reduces government intervention in the economy, promoting market driven decision making and reducing the risk of inefficiency and political interference in business operations.

The State Finance Minister said that overall, divestment of state-owned enterprises in Sri Lanka will lead to a more efficient, competitive, and sustainable economy.