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Sri Lanka SOEs to get more deals without competitive bidding

ECONOMYNEXT – Sri Lanka’s cabinet of ministers had given the nod for state owned enterprises to get more government contracts without competitive bidding, information minister Bandula Gunewardene said.

The cabinet had given the nod for State Trading General Corporation to get contracts of up to 50 million dollars to supply machinery and equipment to state agencies without competitive bidding for the next year.

The privilege to get deals without open competitive had first been given to the STC in October 2019. It had now been extended by another year.

Loss making state enterprises are big drain on taxes and long-term losses had added to the debt burden of the country.

Some SOEs had also borrowed with state guarantees adding liabilities of over 5 percent of gross domestic product to over 90 percent of existing debt.

In a separate deal, the contract to provide Suraksha Insurance service which was with a private firm would also be given to a state agency.

A contract with Allianz to provide Suraksha Insurance had expired on May 31.

The cabinet had ordered that it be given to a state agency.

Sri Lanka Insurance Corporation will get the contract to provide Suraksha insurance from June 01 to September 30. (Colombo/June14/2020)