• Govt. focuses on improving SOE performance and economic contribution
• IMF programme conditions to be reviewed based on govt.’s performance

Sri Lanka’s new government is allowing the loss-making state owned enterprises (SOEs) to operate in a manner that will contribute to the development of the economy in the future, Cabinet Spokesperson Nalinda Jayatissa said.

Speaking at the weekly cabinet decision media briefing held yesterday (31), he said that the former government proposed restructuring of SOEs to sell them to private investors.

“They (the former government) were making decisions on how to separate these SOEs from the state sector and sell them, but the policies of our government are different from them,” Jayatissa said.

He said that the government has handed over the SOEs to line ministries and has instructed them to conduct a thorough study about the SOEs and work in a manner where these SOEs can be used for the development of the country.

“We are not considering SOEs individually,” he said, adding that the government is looking at where Sri Lanka Telecom will be positioned in the economy in the future.

Similarly, he noted that the government is also looking at where SriLankan Airlines will be positioned in the future in relation to Sri Lanka tourism and the economy.

“Based on those visions these SOEs are trying to operate,” he said.

Moreover, he added that the government is looking at how fruitful the SOEs will be by eradicating corruption in the political and state apparatus.

Jayatissa said that if the government fails to include these SOEs in the development of the country, then it would discuss the next thing to do for the SOEs.

On the International Monetary Fund (IMF) programme conditions on the treatment of SOEs, he added that the IMF has not offered conditions that cannot be amended.

“If the IMF has confidence about the management of income and expenses by the government, then we can change some of the conditions,” he said.