ECONOMYNEXT – Sri Lanka is setting criteria for selecting appointees to state owned enterprises (SOEs) in a bid to improve governance and performance, with a high powered committee has already starting to vet appointees, the government said.
The cabinet of ministers had approved a proposal by the Ministry of National Policies and Economic Affairs of Prime Minister Ranil Wickremesinghe for the committee to follow guidelines when recommending directors for SOEs.
The committee is chaired W J S Karunaratha, advisor to President, Karunasena Hettiarachchi, Secretary, Ministry of Defence, Charitha Ratwatte, Senior Advisor to the Prime Minister, Mahinda Haradasa also from the Prime Minister’s office.
Absence of commercial considerations for business decisions, political interference in appointing staff as reward for services to political parties and politicians, failure delegate decision-making to senior management have been identified as some of the reasons for bad performance of SOEs.
Critics have said that pro-ruling class politicians especially the Janatha Vimukthi Peramuna have been opposing the privatization of state enterprises, resulting in them being over-staffed and running large losses, which are then covered with taxes charged from citizens.
During the last regime, SriLankan Airlines which was no longer a burden on the poor was re-nationalized and it ran large losses.
Sri Lanka Insurance, which was re-nationalized after a court order was also used for corrupt activities and personal enrichment of the ruling class and appointees, it is alleged. (Colombo/Apr09/2016)