Sri Lanka to bring law to ban privatization

ECONOMYNEXT – Sri Lanka will bring a law to stop privatization and introduce laws to protect state owned entities, but will amalgamate enterprises in the same lines of business, a policy document by the government said.

A new state agency called the National Enterprise Authority will be set up. Similar state enterprises will be amalgamated.

Senior career professionals will be appointed to run state enterprises.

Chairmen and boards and senior managers will be appointed on merit. Boards of state enterprises will have to table a strategic plan and they will be accountable for malpractices.

A monitoring system will be set up at the Treasury to track important state enterprise.

Sri Lanka’s state enterprises make large losses, and is a burden to the general public, and are usually used to stuff political appointees.

Some of them are also protected from competition through monopoly laws. (Colombo/Dec15/2019)

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