New legislation to restructure State Ventures: PM

12 September 2016 05:45 am - 7 - {{hitsCtrl.values.hits}}

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The government will introduce legislation to deal with the process of converting loss making state ventures into viable entities under a new formula, Prime Minister Ranil Wickremesinghe said in Parliament last week.

The Prime Minister said a board would be established under the provisions of this legislation to act in this regard, and it would report to Parliament.

“In my personal view, if a state venture is riddled with frauds or run at losses, either MPs or any other group should have the right to go to court. In the private sector, when a company is collapsing due to incompetence of administration, provisions are there providing for such action. We don’t find such provisions in the government sector. If such provisions were available, these ventures would not be incurring losses,” he said.

The Prime Minister said once the draft legislation was ready, Parliament could submit its views in this respect.

He was responding to a question by JVP MP Nalinda Jayastissa. He asked whether the government had planned to privatize state ventures and if so the modalities for it.

Mr. Wickremesinghe replied that state corporations were not profiteering, or otherwise the profit margin was very low.

“Then, we are grappling with a debt burden. Administration has collapsed. There are issues in state enterprises. When the 2016 budget was formulating, there were debts which were unaccounted for. Such borrowings not accounted for as part of national debt amounts top Rs.1300 billion,” he said. (Kelum Bandara and Yohan Perera)

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Comments - 7

Fred12 Monday, 12 September 2016 10:07 AM

you cant come out of this mess by selling all our industries to foreigners. Just look at China or Singapore. State entreprises can function alright if there is correct political leadership.

Neo Monday, 12 September 2016 10:08 AM

JVP is amusingly timid now. Without opposing moves to privatize they are asking the models of privatization.

usaguy Monday, 12 September 2016 10:37 AM

Im developing countries the state is involved basically onky in education. leave the rest to the private sector. then our politicians have no way to steal via DM Android App

Ama Monday, 12 September 2016 10:59 AM

This is a remedy for the public when institutions experience financial irregularities. This is a long term solution cos government can change.

Jimmy Monday, 12 September 2016 11:17 AM

Agree with FRED12, The solution is not privatisation. But appointing correct people to the Board of Directors and giving them the power and held accountable if they don't perform. Privatisation results in a few people becoming super rich and no benefit to the people.

surasena Monday, 12 September 2016 11:18 AM

JVP is right. The world economic models have changed over the last decades and Private/Public Partnership can work towards economic development. Now their is no "Left" or "Right", yet the middle path.

waco Monday, 12 September 2016 12:45 PM

Plantations were managing properly mainly ny the British Companies. Late Mrs Sirimavo Bandaranayake nationalised them.All Private Bus Companies were running profitably. SWRD Nationalised them.They did those to pleased the illiterate general public, with the view to get the votes. It was jealacy and nothing else.

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New legislation to restructure State Ventures: PM

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