Sri Lanka SOE policy to see over 80 firms shifted to holding company

Sri Lanka intends to merge over 80 state firms into a holding company (HoldCo) to improve governance, raise cash, and maintain or facilitate eventual divestment of state ownership. These firms are now overseen by the Secretary to the Treasury, but will be transferred from line ministries to the finance ministry. This action tackles concerns of short-term political control of state-owned enterprises (SOEs) and conflicts between agencies and principals. The HoldCo will impose corporate governance norms and disclosures on commercial firms, removing special treatment and Treasury guarantees for SOEs. An SOE Act embodying these goals will be presented to parliament, and it will be overseen by an inter-ministerial SOE policy committee led by the President. The absence of permanent secretaries in ministries in Sri Lanka has contributed to governance challenges in the public service, which differs from other nations.

https://economynext.com/sri-lanka-soe-policy-to-see-over-80-firms-shifted-to-holding-company-133690/

Economy Next

2023-10-05

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