Issuing a statement addressing the growing concerns over the government’s plans to sell off national assets and state-owned enterprises (SOEs), former President Mahinda Rajapaksa has states that these actions of the government have given rise to discontent among trade unions, political parties and the general public.
Rajapaksa emphasized his administration’s stance of not selling a single state-owned enterprise during his tenure as President. He pointed out that instead of privatization, his government focused on re-acquiring some previously sold enterprises, such as the Insurance Corporation and Lanka Hospitals, which continue to yield profits for the state.
“My government had a pragmatic approach towards state owned assets and enterprises. If a state-owned enterprise was making profits and providing a good service to the public, we saw no reason to privatize it. At times, a government may take a strategic decision to manage the prices of certain goods or services produced by state-owned enterprises for the overall benefit of the economy or to help low-income earners…There is no government in the world that does not subsidise certain earmarked economic activities,” Rajapaksa stated.
Highlighting the importance of transparency and national security in any restructuring process, the former President stressed the need for maximum consultation with employees and adherence to a national plan.
However, Rajapaksa also stressed that trade unions adopt a nuanced approach, recognizing that not all private sector involvement in state-owned enterprises should be opposed. He emphasized the potential benefits of private sector participation in revitalizing underperforming enterprises or investing in new projects.
“Going by the dictionary definition of privatization, any involvement of the private sector in the ownership structure or the control of a state-owned asset or enterprise can be characterized as privatization. However, trade unions should not oppose every attempt to obtain foreign or private sector investment in a government-owned enterprise. A pragmatic and non-dogmatic approach to such matters is required”, the statement mentioned.
Rajapaksa cautioned against ideologically driven privatization efforts, noting that extreme positions from both political parties and trade unions could be harmful to the country’s interests.
“Trade unions should regard proposals to obtain private or foreign participation in a state-owned enterprise on a case-by-case basis and look at the overall benefit of such collaboration to the country. The only real way national assets and strategically important state-owned enterprises can be safeguarded is by having a government that takes a pragmatic and non-dogmatic approach to such matters.”
“This is why it is important to take note of the fact that when I ruled the country for more than nine years, the economy flourished and there was not even a discussion on the subject of privatization”, he added.
With the current government in an interim arrangement until the next presidential election, Rajapaksa proposed postponing any sale of state-owned assets until a new government is formed. He argued that this would allow the incoming administration to handle such matters in line with its electoral mandate.
