Sat, 24 Feb 2024 Today's Paper

Govt. to lease out four failed state ventures

16 May 2011 09:45 pm - 6     - {{hitsCtrl.values.hits}}

A A A

The government has decided to lease out the Ceramics Corporation, the Rubber Manufacturing and Export Corporation (RMEC) and two sugar factories at Kantale and Embilipitiya to the private sector, a State Resources and Enterprise Development Ministry (SREDM) said yesterday.

Ministry Secretary Willie Gamage said the four failed state ventures with assets valued at more than Rs.10 billion had been earmarked for restructuring under a 30-year lease with a Compulsory Retirement Scheme (CRS) offered to some 1,000 employees.

He said the ministry hoped to finalize the leasing out process within the next three to four months under the government policy of phasing out loss-making state ventures.

Dr. Gamage said the response by investors to the SREDM ‘Request of Proposals’ had been encouraging and nearly 40 proposals have been forwarded for the two sugar factories alone while proposals were still being received for seven Ceramics Corporation and RMEC factories.

“We will lease out only the immovable and movable assets of the failed ventures while the total ownership will remain with the government. In addition to the assets value, we have added ‘Business Opportunity Value’ -- a new concept in the restructuring of state assets,” Dr. Gamage said.

He said loss making ventures are a huge burden to the government as the Treasury had to make monthly allocations to pay employees’ salaries of employees. For instance, the Treasury allocates nine million rupees every month to pay salaries of employees of the Ceramics Corporation.

Dr. Gamage said lessees must run the business as new enterprises and develop it using modern machinery and efficient management techniques while increasing job opportunities.

“The leasing out of four loss-making state ventures is only the beginning as the government has decided to wound up or restructure all loss-making state ventures,” he said adding that the SREDM had recommended the closing down of Laksala and the relocation of BCC.

“The government must not venture into businesses like buying and selling except supplying the vital utility services such as water, electricity and transport,” Dr. Gamage said.  (SAJ)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

  Comments - 6

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka
  • Aruna Tuesday, 17 May 2011 03:16 AM

    This government won't sell public properties.

    Gavel Tuesday, 17 May 2011 05:14 AM

    Good move! everyone should appreciate it

    Doha Boy Tuesday, 17 May 2011 05:28 AM

    Mr.WW time to act against PRIVATIZATION!!!!!!

    dagobert Tuesday, 17 May 2011 09:34 AM

    Yes.... time to make them and other loss making enterprises viable and improved.
    Hope the workers realise this importance and their future.
    trade unions & politicians need to keep their claws off the workers of these institutions.

    Excellent.... private sector engagement.

    Saman Tuesday, 17 May 2011 11:19 AM

    Pls CEB & Petrolium alo

    Heamu Tuesday, 17 May 2011 12:00 PM

    It is good. Hand over these with private assets of director boards.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment





Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Human lives at stake… When protectors of the law become predators

On Thursday (January 18), a sub-inspector attached to the Narammala Police St

Research on sex work during Lankan civil war: Sex workers and their faint cries to access basic rights

A broken pair of rubber slippers kept on a display caught this writer’s eye

Newlywed Sri Lankans forced to remain childless

The ongoing economic crisis in the country is not only impacting the availabi

Paramedics and docs in tug of war over raise in DAT allowance

On Tuesday (January 9), staffers in the paramedic services launched an unanno