Business
SOE reforms seen as bedevilled by corruption and governance issues
By Lynn Ockersz
The local State Owned Enterprises (SOE) reforms process is dogged by widespread corruption and governance issues. There was general agreement on this position at a wide-ranging discussion held under the aegis of the Sri Lanka Innovators’ Forum of the Dr. Gamani Corea Foundation on October 16 at the BMICH.
The prime focus of the discussion was a paper presented by the Advocata Institute, Colombo, on ‘Public Enterprise Reforms’. Key presenters for the Institute were its senior personnel Dhananath Fernando and Ms. Rehana Thowfeek. Director General, State-Owned Enterprises Restructuring Unit of the government, Suresh Shah, chaired the discussion and moderated it.
The principal panelists at the forum and some key comments made by them are as follows:
Dhananath Fernando: ‘Markets must be allowed to function. The government has no business in business enterprises. Doing SOE reforms fast and transparently is important. Profitability should not be the only consideration in this process. It is equally important to return to the country’s ownership these assets in the form of SOEs. The owners of an SOE are the citizens of the state. However, the worrisome matter is that citizens do not have a say in how an SOE is run; neither can they exit the reforms process if the SOE’s performance is unsatisfactory.’
Rehana Thowfeek: ‘A Rs. 1.8 trillion debt is owned by SOEs. However, reforming SOEs is vital for development. Corruption too is a recurring issue in SOEs. Sri Lanka’s health sector is a case in point. Privatization, though, should be seen as a priority.’
Suresh Shah: ‘The SOE restructuring process is geared to serve the wellbeing of the public and is not directed by the IMF. Listing of SOEs is vital but governance issues are getting in the way of development. The government should invest in the public sector but a prime issue is whether money is going to the right place.’
Dr. Lloyd Fernando, chairman, Dr. Gamani Corea Foundation: ‘There is a need to look at our problems holistically. The Temasek model is vital in this connection.’
Mahendra Jayasekera, Managing Director, Lanka Wall Tiles & Lanka Tiles: ‘There is this recurring problem of politicians trying to have a say in privatized enterprises. Besides, they are notorious for their double-talk. For example, they say one thing in parliament on SOE reforms and another thing to their electorates. They do not understanding the concept of return on assets. We have a serious governance problem in the country. We need to find out what benefits would accrue to the country from SOE reforms. Besides, people are skeptical about reforms being of any use.’
Chandrasena Maliyadda, Former Secretary, Ministry of Plan Implementation, Ministry of Southern Regional Development and Ministry of Posts and Telecommunications: ‘Privatization must be carried out after studying every SOE. Each SOE is different. We do not know whether the bidders for SOEs have the capability to run them, once they take them over. The Kantale Sugar Factory is a case in point. The irony is that these bidders seek government assistance to run these SOEs once they are privatized. However, the private sector, although seen as an ‘engine of growth’ is not at all effective.
‘The main issue is that our economy has been eroding. We don’t produce, there are no vibrant entrepreneurs. There is no risk-taking. What happens in privatization is that SOEs go from one set of corrupt hands to another. We should look carefully at how we are going to privatize. Privatization, though, is no panacea. All sectors are corrupt. We need to tread carefully.’
R.H.W.A. Kumarasiri, Director General, National Planning Department: ‘Do we have a system to put the right man in the right place? Are we implementing plans effectively? Good governance is important in every sector. Are all our sectors heading in one direction or are we at cross-purposes? All relevant stakeholders in development need to communicate effectively with the public on these issues. Different models are needed for different SOEs.’
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
