Monday, 14 October 2019 06:20

89 loss-making SOEs become liabilities

Governance and transparency are to be strengthened in 422 State Owned Enterprises (SOEs) as most of these institutions are running at a loss despite this sector’s contribution to GDP being 33 per cent last year.

Out of the 422 SOEs, 54 SOEs have been identified as strategically important State Owned Businesses Enterprises (SOBEs) that plays a catalytic role in transforming the country’s economy to a high growth trajectory, a recent progress review report revealed.

At present, 287 SOEs are being monitored by the Department of Public Enterprises (PED) and the remaining SOEs come under the purview of the Department of National Budget (NBD).

According to the official data, 89 public enterprises had shown a deficit totalling Rs. 57,158 million in their financial results in the year 2017/ 2018.

The Ceylon Electricity Board, Sri Lanka Rupavahini Corporation, Sri Jayawardanapura General Hospital, and 12 universities were with considerable financial deficits, the report highlighted.

As compared with the financial results, 109 public enterprises were able to reduce their financial deficits during the year 2017/2018. In addition, 167 institutions had recorded the financial surplus of Rs. 453,936 during the year under review.

The financial surplus of the Land Reform Commission and Tourism Promotion Bureau as compared with the previous year had shown an improvement..

The Treasury pays back the loans amounting to Rs. 185 billion for around 100 bank guarantees provided to the ministries and departments, the report highlighted.

(LI)

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