Sri Lankans believe SOE service levels do not justify losses: survey

ECONOMYNEXT- Colombo-based think tank Advocata said 81 percent of Sri Lankans believe that services of state-owned enterprises (SOEs) do not justify their losses, according to a survey.

Advocata had surveyed 855 respondents across 8 provinces in door-to-door interviews, and found no significant difference in opinion based on income, gender or socio-economic group.

Residents of the Central Province showed the highest satisfaction of SOE performance, with 39 percent saying the losses were justified.

In the Southern Province, just 6 percent believed the losses were justified by adequate services, while in the Western Province, 12 percent of the respondents believed so.

The Ceylon Petroleum Corporation posted a 104 billion rupee loss in 2018, while the Ceylon Electricity Board’s losses were 29 billion rupees.

SriLankan Airlines poste a 41.7 billion rupee loss for 2018/19.

Advocata said SOEs are vulnerable to mismanagement and corruption because of conflicts between the ownership and policy-making fuctions of the government, and undue political influence on their policies, appointments and business practices.

President Gotabhaya Rajapaksa has appointed a new committee to evaluate appointments into SOEs. (Colombo/Dec12/2019)

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