Cabinet nod to establish company to expedite SOE restructuring program

The Cabinet of Ministers has green-lighted the proposal to establish a parent company, affiliated with the Treasury, in a bid to expedite the program to restructure state-owned enterprises (SOEs).

The proposal was presented by President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization & National Policies.

The Treasury Secretary will own all shares of this company, according to a press release issued by the Government Information Department.

Meanwhile, the SOEs that are being restructured will be made subsidiaries of this company.

Last year, Sri Lanka established a special unit at the Ministry of Finance with the specific task of restructuring SOEs, as committed to in the Interim Budget after the Cabinet of Ministers approved a proposal in this regard at its meeting on September 05.

This unit was tasked with identifying the methods for minimizing the financial burden shouldered by the General Treasury as well as enhancing the total performance of public entrepreneurship.

Presenting the 2023 Budget in parliament on November 14, 2022, President Ranil Wickremesinghe pledged to take necessary measures to restructure SOEs including SriLankan Airlines and Sri Lanka Telecom (SLT).