Sri Lanka moves ahead with new SOE management legal framework
The Morning: Sri Lanka is to introduce a new legal framework for the management of state-owned enterprises (SOEs), with a draft bill being approved by the Cabinet of Ministers has said.
“The Cabinet of Ministers has granted its policy approval for the state-owned enterprises management draft bill prepared in order to introduce a new legal framework for the proper management and maintenance of state-owned enterprises,” a Cabinet decision released on Tuesday (29) said.
Cabinet Spokesman Nalinda Jayatissa said it has been recognised that the SOEs should be restructured and well-managed in a manner without making them a continued burden on the Treasury and the country’s economy, with the support of local or foreign investments.
He further noted that it is the policy of the new government to introduce an efficient and transparent mechanism for this purpose.
“A preliminary draft titled ‘State-Owned Commercial Enterprises Management Bill’ has been prepared to introduce a new legal framework for the proper management and maintenance of SOEs, which will enable the SOEs to be completely void of political influence and to appoint professionals with expertise in their fields to their boards of directors with professional qualifications,” Jayatissa added.
Accordingly, the Cabinet of Ministers has granted its policy approval for the said draft bill and approved the appointment of a special committee with the following composition to review and submit suitable recommendations for further improvement of the draft.
OSL take:
Sri Lanka’s programme to reform SOEs has presented a host of new business/investment opportunities. With Sri Lanka’s overall economy on a growth path with the country targeting on becoming a regional hub, the country’s SOEs in need of reform and expansion indicate ventures with a growing business potential. Sri Lanka’s geographical positioning in the Indian Ocean, strong trade ties with many foreign countries and the target of achieving regional hub status, all add to the overall attraction of the country as an emerging business destination. The strength, resilience and growth recorded by Sri Lanka’s economy within a short span of time after facing an unprecedented economic crisis have served to boost the confidence of foreign businesses/investors to explore the expanding business/investment opportunities in the country. It is in such a backdrop that the government of Sri Lanka is looking at reforming and expanding SOEs. Given the latest developments in Sri Lanka, the country’s SOE reforms programme presents many lucrative business/investment opportunities for foreign businesses/investors on the lookout for such.
| Article Code : | VBS/AT/20250505/Z_2 |