The 52 key State-owned Enterprises (SOEs) which recorded losses in 2022 have recorded a collective profit of Rs. 340 billion in 2023 after they underwent the reform agenda, State Minister of Finance Shehan Semasinghe 

Speaking in an interview with TV Derana on Monday (29 April), he said that the key identified strategically important SOEs which recorded a loss of Rs. 740 billion in 2022 has recorded an approximate profit of Rs. 340 billion in 2023.

He said that the SOEs will have to be vigilant and operate far better than the private sector operates hereafter, adding that the SOEs should be on par with the private sector operations or even go beyond that.

“Likewise, if you go beyond that or if you operate in the sense of a private sector organisation the benefit will be passed onto the ordinary people or everybody in Sri Lanka,” he said. 

Moreover, he added that the SOEs have adopted cost-reflective pricing mechanisms which have a harsh impact on the poor and the vulnerable. “So as a result to mitigate this impact, we brought in Aswesuma,” he said.

However, Semasinghe said that providing relief to vulnerable impacted by the SOE prices is not the way forward, “we will restructure SOEs to make sure that SOEs won't become a burden to the Sri Lankan economy,” he added.

Further, the State Minister said that Sri Lanka’s debt advisors will re-begin the negotiations through the second round of discussions with the bondholders and their advisors.

“I am very confident that we will restart our negotiations, advisors will re-begin the negotiations and we are very confident we will come to a resolution for the IMF to present the case of the second review to its board,” he said.

State Minister Semasinghe said that Sri Lanka will not deviate from comparability treatment and be transparent in debt negotiations.