• The restructuring of Sri Lanka's state-owned enterprises is delayed to ensure transparency, maximum value, protection of employee rights, and service quality improvement, amid political uncertainty and the upcoming presidential election.

State Finance Minister Ranjith Siyambalapitiya stated that the restructuring of Sri Lanka’s state-owned enterprises (SOEs) is delayed to ensure transparency, maximum value, employee rights protection, and service quality improvement. Despite efforts and calls for bids, no SOEs have been restructured in the last two years. The government recently terminated the bidding process for Sri Lankan Airlines and will adopt an alternate strategy. Siyambalapitiya emphasized the government's responsibility in restructuring, aiming to maximize benefits for the country, the treasury, the public, and clients, ensuring the process is done transparently and thoroughly.

The delay in restructuring is also influenced by the upcoming presidential election and the need for fair and transparent processes. Though some SOEs have shown profits in 2023, analysts attribute these gains to the government absorbing significant debts. The government has called bids for various SOEs, with some bids shortlisted, but the process has faced challenges, including withdrawals from prequalified bidders. Deloitte India is advising the government on these transactions.

“Huge responsibility” delays Sri Lanka’s SOE restructuring: State FinMin | Economy Next