Business
Restructured SOEs to be converted into limited liability companies – Suresh Shah
By Hiran H.Senewiratne
A new legislature would be in place by the middle of this year to restructure 130 State Owned Enterprises (SOE), which would not accommodate any political appointments to their Boards because they will be converted into limited liability companies, Head, State-Owned Enterprises Restructuring Unit (SOERU), Suresh Shah said.
‘At present, out of 130 SOEs in the country, 17 are non- operational but the Boards of directors are still functioning in them. In respect of 85 entities, state intervention is not necessary. These would need to be sold but with regard to the balance; government intervention is needed, Shah said.
Shah made these observations at a recent seminar titled, “Enhancing Efficiency of State Owned Enterprises”, organized by the Organization of Professional Associations of Sri Lanka (OPA). It was attended by a large number of professionals.
Shah said that enhancing efficiency of state owned enterprises is immensely important considering the country’s current economic situation and added that Sri Lanka Telecom, CPC and CEB should be definitely privatized for the betterment of the people of the country.
Shah added: ‘CPC, Sri Lanka Telecom and CEB get guarantees from the Treasury and raise loans from state banks. When those loans cannot be settled, the state banks’ balance sheets are at stake.
‘Therefore, Sri Lanka Telecom and some major parts of the CEB should be privatized to enhance the services being provided to the people of the country. Even CPC should be privatized for the sake of the people who need a better service.
‘SOE entities will be restructured based on nine principles. All appointments to Boards must be done through the Constitutional Council. Politicians should not get involved in appointments.
‘Approximately 85 institutions were identified as being suitable for divestment. Among the challenges that had been identified by the SOE Restructuring Unit were; subsidies, the appointment of unsuitable directors, overstaffing, and circular debt.
‘Consequently, the Unit had come up with a number of recommendations that included, divestment of loss-making or non-strategic SOEs, bringing all such enterprises under the Finance Ministry, while making them limited liability companies.
‘The importance of not “parking” subsidies with state banks should be emphasized. The government should create a better environment to attract investors to the country. Singapore is a fine example of this.
‘Divestiture guidelines would be crafted by the Unit with experts’ ideas and once divested, these entities would be holding companies and profits would be divided as dividends among the owners of the entity, as in listed companies.’
Secretary to the Treasury and the Ministry of Finance Mahinda Siriwardena highlighted that state owned enterprises have both positive and negative impacts on the economy. ‘The government was also implementing institutional reforms to improve the balance sheets of these enterprises. Another key reform was bringing all SOEs under the control of a holding company, he said.
Siriwardana also noted that strict regulations would be brought regarding the appointment of directors. He said reducing the losses in some SOEs is the priority of the government and strict regulations will be brought in future when appointing directors, chairmen etc.
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
