WEB DESK
Sri Lanka’s cabinet of ministers has given approval to the state owned enterprise reform policy. Cabinet spokesman and Minister for Mass Media Dr. Bandula Gunawardana said that the reforms are aimed at strengthening government finances and facilitating economic recovery.
He said the policy would transform the state enterprises into market-oriented entities that no longer burden the country’s budget. Dr. Gunawardana emphasised the need for a cost-reflective pricing policy to prevent bankruptcy caused by selling goods below cost.
The optimization of employment is also a priority, as excessive workers could result in decreased productivity. Furthermore, the minister said that the policy would help attract both domestic and foreign investments by creating a competitive and market-based environment.
Dr. Gunawardana stated that the reform of state owned enterprises is crucial for improving financial conditions, economic variables, and the balance of payments.
As part of the reform efforts, some agencies may need to be divested and investments made in productive areas, while certain divisions may have to be closed. The SOE reform unit was proposed in the Budget 2023 and was established to facilitate the implementation of these measures, which are seen as a crucial step in overcoming the country’s economic crisis.