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SOE reforms to suit present-day needs

SOE reforms to suit present-day needs

27 Mar 2025 | BY Sahan Tennekoon


The Government stated that it is not prepared to maintain certain State institutions, which were established decades ago to provide specific services, in their original form, but seeks to reform these institutions in line with present-day needs.

Speaking at the weekly Cabinet media briefing yesterday (26), Cabinet Spokesperson, Minister Dr. Nalinda Jayatissa stated that most of these institutions were established in the 1960s and 1970s to offer services that were not provided by the private sector. He emphasised that the Government does not have a ‘blind’ belief that all these institutions must be maintained as they are. 

He explained that the Government is reviewing these institutions individually and is prepared to make decisions regarding them. “This is a Government that strengthens the public service. That is why we increased employee salaries, spending Rs. 110 billion in this Budget. This increase serves two main purposes; first, to attract the best talent to the public service, and second, to improve efficiency. Therefore, we give the public service the recognition it deserves. But that does not mean maintaining every State institution as it is,” he said. 

He also claimed that the previous Government, led by former President Ranil Wickremesinghe, had deliberately weakened the functions of certain State institutions through regulations. He further stated that the recommendations submitted by the committee appointed to review State-owned institutions and enterprises are not the final decision on the matter. 

“The committee has only classified 160 institutions into nine groups after assessing their processes and functions. This is not the final step. Only proposals have been submitted under these groups to streamline the institutions. We have not made a final decision. More proposals will be considered, and we hope to consult further on this matter,” he added.

He also clarified that no decision has been made to merge the Sri Lanka Broadcasting Corporation, the Sri Lanka Rupavahini Corporation, and the Independent Television Network. Instead, the Mass Media Ministry is working on developing these institutions without merging them, he said.



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