Sri Lanka transforms 52 loss-making SOEs into profitable ventures

COLOMBO: The Sri Lankan government has successfully turned 52 state-owned enterprises (SOEs) that were previously making losses into profitable ventures in 2023, according to State Minister for Finance, Shehan Semasinghe. 

These SOEs had incurred losses of around Sri Lankan Rs 743 billion (approximately $2.4 billion) in 2022. The Ceylon Petroleum Corporation and the Ceylon Electricity Board, two of the SOEs that were previously making the most losses, have now become profitable due to the implementation of a cost-reflective pricing mechanism and recent economic reforms.

The minister stated that previous governments had provided essential services at subsidised prices to alleviate the burden on the people. However, this approach led to a severe economic crisis in Sri Lanka over the long term. Currently, the government is focusing on providing targeted welfare for the less fortunate, rather than offering subsidised pricing systems for essential services to everyone, added Semasinghe.

By RSS/Xinhua