SCIs signed with eight State-Owned Enterprises | Daily News

SCIs signed with eight State-Owned Enterprises

The government yesterday signed Statements of Corporate Intent (SCIs) with eight State-Owned Enterprises (SOEs) for creating a platform for themselves to operate in a commercially viable manner enhancing their contribution to the nation’s Gross Domestic Product (GDP) and facilitating those enterprises to act independently without depending on the Treasury.

Accordingly, followed by the approval of the Cabinet of Ministers, the Finance Ministry signed SCIs with eight selected SOEs, Sri Lanka State Plantation Corporation, Lanka Sathosa (Pvt) Ltd, Central Engineering Consultancy Bureau, State Timber Corporation, State Pharmaceuticals Corporation, Milco (Pvt) Ltd, National Livestock Development Board and Geological Survey and Mines Bureau.

The SCI is a tripartite Memorandum of Understanding (MOU) was signed by the Secretary to the Ministry of Finance Dr. R.H.S. Samaratunga with Secretaries of relevant line Ministries and the Chairmen on behalf of the Board of Directors of the respective SOBEs.

It is expected to improve financial efficiency through improved corporate practices, introduce innovative financing, maintain strong and prudent financial management, offer exposure to competitiveness and international best-practices and create effective human resource management while enhancing public accountability.

Moreover, SCI contains key performance indicators linked to Corporate Plan, Action Plan and Annual Budget of the SOEs spread over three years’ time horizon.In addition, the impact of all noncommercial operations of the SOEs is also taken into account and included in the SCI.

The effectiveness of the SCI process will depend fundamentally on to what extent the SCI will be used as their own management tool by the selected SOEs and the Line Ministries. Progress of SCIs are monitored by PED and the PED submits a progress report to the Cabinet of Ministers periodically.

On the success of the implementation of this programme, the government is expecting to extend this move for the other 400 SOEs as well by time to time.

Addressing the gathering, Finance Minister Mangala Samaraweera said the main objective of this move is to make these institutions profitable by increasing their productivity and financial position which will defiantly help to minimize the burdens bear up by the Treasury.

He said most of these institutions have been running at a loss. In 2018, 20 public intuitions out of 52 incurred a loss of nearly Rs.26 billion. What we want is to amend these and move forward without burdening the general public. We want to ensure the people are not burdened and their funds are being utilized for the development of the country and not for covering the loss of public institutions. That is why we implemented this move which would enable to contribute positively to the strategically important SOBEs towards the contribution making to the GDP of the country,” the Minister said.


 

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