Business
SOE restructuring delays seen as discouraging prospective investors
By Hiran H. Senewiratne
The restructuring of State Owned of Enterprises (SOE) is being delayed day- by –day, resulting in an uncertain situation where prospective investors will also tend to think twice before investing in Sri Lanka, Advisor, Advocata Institute Prof Rohan Samarajiva said.
“Although certain trade unions say that Sri Lankan Airlines, CPC, CEB, Water Supply and Drainage Board and other state owned enterprises are making profits, there are various issues in their accounting system. They are actually incurring losses because some of their debts and the relevant interests are borne by the Treasury, Prof. Samarajiva said at a forum organized by Advocate Institute on the topic, ‘IMF and the Urgency for State – Owned Enterprises Reforms’. The event was held at BMICH on Tuesday.
Samarajiva added: “Last year’s interim budget in August 2022 specifically mentioned restructuring of several state owned enterprises, including Sri Lankan Airlines, CEB, CPC, Hilton Hotel and several other entities. But 14 months have passed and not a single such entity has been restructured by the government.
“Undue delays in restructuring SOEs create some uncertainty among prospective investors and workers. Further, due to the inefficiency of those institutions and the higher number of workers in such entities, prospective investors will not be able to get a return on investment.
“Many years ago there were several organizations, such as the Public Enterprise Reforms Commission, Board of Infrastructure Investments and National Procurement Agency that operated in a highly efficient way with a knowledgeable set of personnel, who undertook to select and recommend loss- making state owned enterprises to restructure them. But those entities no longer exist and these tasks are now being vested in an inefficient set of people.”
Advocata Institute’s, Chief Executive Officer, Dhananath Fernando, addressing the forum said that state owned enterprises are now run “by a set of rogues in the country. They need to be privatized or listed in the CSE.
Fernando added: “From 2005 to 2022 SOE entities incurred a Rs 1.8 trillion loss for the country. Therefore, the IMF also specifically mentions that bribery and corruption are the root causes of these ills. The government hopes to reduce Debt to GDP to 95 percent from 128 percent by 2032. But its target could not be achieved if the government does not have proper revenue sources. High expenditure in the government itself, a high debt component and no ample foreign direct investment also ail the country.
“In 2022, losses incurred by state owned entities were; CEB Rs 139 billion, CPC Rs 100 billion, Water Board Supply and Drainage Board Rs 300 billion and Sri Lanka Airlines Rs 72 billion. It is incumbent upon the government to restructure those entities as soon as possible, either by listing in the CSE or by going for private- public partnership, or any suitable business model to make them more viable.”
Independent Consultant Ravi Ratnasabapathy said, Sri Lankan Airlines up to 2010 ran comfortably under an Emirates management, which held a 46.6 percent shareholding. After 2010 the government took over the entire ownership of shares from Emirates by paying US $ 53 million. In this whole deal episode, major state owned banks, Bank of Ceylon, Peoples Bank, National Savings Bank and the EPF paid Emirates Airline on behalf of the government Treasury.
“Due to that two state banks are suffering as they are now facing a difficulty in recovering that money.
“Therefore, it is up to the government to either find a proper solution or evolve a business model to arrest the situation.”
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.”
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