Talks between the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) regarding the provision of fuel to the CEB for power generation purposes have now come to a standstill, after the CPC demanded that advance notice be given by the CEB to obtain fuel and that payments for fuel be paid in US dollars.
While the two ministers in charge of the two institutions, i.e. Energy Minister Udaya Gammanpila and Power Minister Gamini Lokuge, have disagreed on the terms and conditions of the agreements the two institutions have entered into, the CPC’s decision seems more reasonable given its ability to import fuel amidst the foreign reserves crisis. After suffering massive losses for years, the CPC has taken a firm stance, which should have been taken a long time ago, and appears to be strict and at the same time certain about what it can and cannot do. Although the impact this decision may have on the CEB, and in turn the supply of electricity, is significant, this might reduce the impact the provision of fuel to the CEB for credit has caused on the CPC.
While this is an unprecedented development, this is also a commendable step as far as the profits and losses of state institutions are concerned, in a context where a large number of state institutions keep bearing expenses they cannot bear. If the government and state institutions are serious about overcoming the prevailing economic crisis, especially the foreign reserves crisis, the CPC’s stance should also be the beginning of progressive changes in state institutions.
First and foremost, state institutions should be reminded of the fact that as much as their main duty is to provide services to the public, spending money they do not have is not the best solution to keep these institutions running. In these trying times, the Government must pay attention to restructuring loss-making state institutions with a focus on setting some strict and economically beneficial standards.
The discussion on restructuring state institutions is not an easy one. Almost every Government that came to power during the last two to three decades has vowed to do it. However, they do not seem to have succeeded, and the mammoth losses suffered by the CPC and the CEB, among other institutions, bear witness to it. In this context, private sector-like governing and operational structures that do not ignore the importance of managing spending and earnings, should be introduced to state institutions.
A vital part of this discussion is getting more private sector engagement in this restructuring process, thereby making private firms that are acting independently or with foreign partners a more active partner in the country’s progress. A large number of private firms that have the knowledge, resources, and networks that can help the state sector, have been overlooked during the past few decades, mostly due to opposition from various parties that public-private partnerships (PPPs) are equal to privatising the state sector.
At the same time, such partnerships could help end monopolies in various sectors that have actually become a burden to the country’s economy. If the Government engages more with the private sector, it will end monopolies dominated by not only the private sector, but also by the public sector. During the past few months, rice prices governed largely by the private sector and the quality and supply of liquefied petroleum gas (LPG) governed mainly by the state sector have raised the importance of PPPs, and if the initiative is taken, more collaboration between the two sectors would create more competition and standards, resulting in more benefits for the people.
It is time to do away with rudimentary solutions such as importing rice when the Government cannot control the private sector rice mafia, and instead resort to finding solutions to national issues together with the private sector. Moreover, supporting private firms such as Laugfs Gas PLC which has expressed confidence that it can break Litro Gas Lanka Ltd.’s dominance in the supply of LPG, should receive the authorities attention, for the future of the people.
It is high time for Sri Lanka to once and for all put an end to state institutions collapsing in the process of trying to protect other state institutions from collapsing. It is the Government’s responsibility to remind state institutions that suffering losses to keep public services running is tantamount to putting that very burden on the public later through taxes, and is therefore, a disservice. That may help put an end to parasitic state institutions and their long suffering host state institutions.Parasitic state institutions
19 Jan 2022
Parasitic state institutions
19 Jan 2022
Talks between the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) regarding the provision of fuel to the CEB for power generation purposes have now come to a standstill, after the CPC demanded that advance notice be given by the CEB to obtain fuel and that payments for fuel be paid in US dollars.
While the two ministers in charge of the two institutions, i.e. Energy Minister Udaya Gammanpila and Power Minister Gamini Lokuge, have disagreed on the terms and conditions of the agreements the two institutions have entered into, the CPC’s decision seems more reasonable given its ability to import fuel amidst the foreign reserves crisis. After suffering massive losses for years, the CPC has taken a firm stance, which should have been taken a long time ago, and appears to be strict and at the same time certain about what it can and cannot do. Although the impact this decision may have on the CEB, and in turn the supply of electricity, is significant, this might reduce the impact the provision of fuel to the CEB for credit has caused on the CPC.
While this is an unprecedented development, this is also a commendable step as far as the profits and losses of state institutions are concerned, in a context where a large number of state institutions keep bearing expenses they cannot bear. If the government and state institutions are serious about overcoming the prevailing economic crisis, especially the foreign reserves crisis, the CPC’s stance should also be the beginning of progressive changes in state institutions.
First and foremost, state institutions should be reminded of the fact that as much as their main duty is to provide services to the public, spending money they do not have is not the best solution to keep these institutions running. In these trying times, the Government must pay attention to restructuring loss-making state institutions with a focus on setting some strict and economically beneficial standards.
The discussion on restructuring state institutions is not an easy one. Almost every Government that came to power during the last two to three decades has vowed to do it. However, they do not seem to have succeeded, and the mammoth losses suffered by the CPC and the CEB, among other institutions, bear witness to it. In this context, private sector-like governing and operational structures that do not ignore the importance of managing spending and earnings, should be introduced to state institutions.
A vital part of this discussion is getting more private sector engagement in this restructuring process, thereby making private firms that are acting independently or with foreign partners a more active partner in the country’s progress. A large number of private firms that have the knowledge, resources, and networks that can help the state sector, have been overlooked during the past few decades, mostly due to opposition from various parties that public-private partnerships (PPPs) are equal to privatising the state sector.
At the same time, such partnerships could help end monopolies in various sectors that have actually become a burden to the country’s economy. If the Government engages more with the private sector, it will end monopolies dominated by not only the private sector, but also by the public sector. During the past few months, rice prices governed largely by the private sector and the quality and supply of liquefied petroleum gas (LPG) governed mainly by the state sector have raised the importance of PPPs, and if the initiative is taken, more collaboration between the two sectors would create more competition and standards, resulting in more benefits for the people.
It is time to do away with rudimentary solutions such as importing rice when the Government cannot control the private sector rice mafia, and instead resort to finding solutions to national issues together with the private sector. Moreover, supporting private firms such as Laugfs Gas PLC which has expressed confidence that it can break Litro Gas Lanka Ltd.’s dominance in the supply of LPG, should receive the authorities attention, for the future of the people.
It is high time for Sri Lanka to once and for all put an end to state institutions collapsing in the process of trying to protect other state institutions from collapsing. It is the Government’s responsibility to remind state institutions that suffering losses to keep public services running is tantamount to putting that very burden on the public later through taxes, and is therefore, a disservice. That may help put an end to parasitic state institutions and their long suffering host state institutions.Kapruka
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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!