Experts focus on loss making state owned enterprises | Daily News


 

Experts focus on loss making state owned enterprises

Deputy Minister Eran Wickramaratne, LIRNEasia Founder Chairman Prof.  Rohan Samarajiva, Associate Prof, Lee Kuan Yew School of Public Policy Singapore,Dr Razeen Sally and  Advocata Founding Member Ravi  Ratnasabapathy.  The panel discussion was moderated by JB Securities CEO, Murtaza Jafferjee .Picture by Saman Sri Wedage

The Advocata Institute last week expressed concern over the huge financial losses incurred in many State Owned Enterprises (SOEs) in the country. It said that during the period between 2006 and 2015 country’s loss-making SOEs cost the tax payer a colossal sum of Rs. 636 billion while the profitable SOEs contributed Rs. 530 billion.

Further the Advocata Institute highlighted that although there are 245 State Owned Enterprises in the country, the General Treasury has summarized the financial information of only 55 Enterprises that are

strategically important.

The forum and the panel discussion was held at Kadirgamar Centre in Colombo with the participation of several important personalities who are acclaimed in the field of economics.They included Deputy Minister Eran Wickramaratne, LIRNEasia, Founding Chairman Prof. Rohan Samarajiva, Associate Prof, Lee Kuan Yew School of Public Policy, Singapore, Razeen Sally and Advocata Founding Member Ravi Ratnasabapathy. The panel discussion was moderated by JB Securities CEO, Murtaza Jafferjee.

The representatives of the Advocata Institute said the published data on the SOE performances is woefully inadequate and the performance of around 190 State Owned Enterprises still remained unknown.

The Advocata Institute said that it’s a pathetic situation and urged the government to take steps to publish the data and performance of all SOEs in an accessible format for the benefit of all in the country.

According to the remarks made in the Advocata Institute inaugural edition 'The State of State Enterprises in Sri Lanka’ which was presented to Deputy Minister Wickramaratne, the net loss in aviation during the period was Rs. 94,218 million and the profit during the period was Rs. 33451 million, the net loss of in Energy was Rs 358,564 million, while the profit was recorded as Rs. 57, 385 million, the net loss of water was Rs. 8245 million while the profit was Rs. 3502 million and the net loss in transport was Rs. 61, 450 million, while no profit was recorded during the period.

Meanwhile, the reports says that the Ports received a net profit of Rs. 39, 437 million during the period , the Banking and Finance received a net profit of Rs. 293,936 million, the Construction received a net profit of 4932 million, the livestock received a net profit of Rs. 1886, the net

profit received by Non renewable resources was Rs. 3762 million, Health received a net profit of Rs. 8263 million, net profit received by Media was Rs. 4,338 million.The Plantation received a net profit of Rs. 1307 million, Insurance received a net profit of Rs. 42,600 million and Lotteries received Rs. 11, 337million.

During the session, the panelspoke about the steps taken by the Government to privatize several State Owned Institutions including the SriLankan Airlines and plantation companies.

Minister Wickramaratne said that discussions are still going on in regard to the privatization of main state owned enterprises and the Government is doing it for the benefit of people in the country.

Prof Samarajiva also mentioned about the misuse of public goods by certain politicians. He said there are politicians who have a good track record and everybody needs a decent politicians like them to create a better cultural sector in the country.

“Politicians should know the correct role that should be played for the betterment of the country and its people Talking about the economic freedom, he said economic freedom and reforms are immensely needed to develop state owned enterprises.


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