Sri Lanka’s Finance Minister, Ravi Karunanayake last week announced that the Treasury will inject a sum of Rs. 185 billion to 55 State Owned Enterprises (SOE) under the new government’s plan to restructure SOEs. The objective of SOEs to be self-financed without depending on the General Treasury will be a reality soon, said Karunanayake.
“Under this major restructuring program, the government will make a capital infusion of Rs.65 billion to the Water Board, Rs.100 billion to the Ceylon Petroleum Corp, US Dollar 125 million to SriLankan and US Dollar 25 million to Mihin Lanka in the year 2015, by way of Treasury bonds,” the Finance Ministry said in a statement.
At present Sri Lanka has around 245 public Corporations, institutions and boards classified as SOEs of which 55 have been identified by the government as the strategically important enterprises which are engaged in commercial, industrial and financial activities.
Karunanayake said that as part of the government’s plan to restructure these strategic SOEs, actions have been taken to make SriLankan Airlines, Mihin Lanka, Ceylon Petroleum Corporation and the Water Board to be self-financed with the capital infusion by the General Treasury.
“Many of the SOEs were making losses for the last several years. Commercial operations of energy, aviation and commuter transport and plantation clusters have ended up with losses.
CPC has an accumulated debt of Rs.234 billion while CEB‘s corresponding value of Rs.57 billion. SriLankan airlines debt is running at Rs 124 billion,” the statement noted.