Features
WHY GOVERNMENT SHOULD SELL EVEN PROFIT-MAKING STATE-OWNED ENTERPRISES
By Sanjeewa Jayaweera
The recent pronouncement by President Ranil Wickremesinghe (RW), that “The government has no business to be in business.” was music to the ears of those who believe in a free market economy. However, it also drew the ire of the loony left, the trade unions, a few die-hard academics who still cling to ideals of socialism as well as a few journalists.
In all probability, if a straw poll is conducted, most voters would say that the Government of Sri Lanka (GOSL) should continue to own and operate state-owned enterprises (SOEs). It is indeed a paradox that despite it being well-known that SOEs are inefficient, corrupt and a drain on taxpayer funds due to significant losses, many in our country still believe privatization is undesirable. One can only assume this is due to the entitlement mentality ingrained in us over several decades and the belief that the government should be our provider.
What ails the SOEs
Citizens ultimately own SOEs but have no voice and lack the interest or wherewithal to monitor them. Therefore, efficiency is entirely dependent on the existing system of governance. Political patronage is the criterion for selecting the top management of SOEs allowing government politicians to choose their relatives and close friends despite their having no prior experience in holding such positions. That such appointments have resulted in adverse consequences to the enterprise and the country is a well known fact.
Employment in state institutions has been on a ‘Jobs for the Boys’ philosophy to which many, including university graduates, subscribe. All SOEs are overstaffed primarily due to elected politicians using their power and influence to overload them despite no existing vacancies. The problem has been compounded by the fact that most of those appointed are poorly skilled. Once employed, they join trade unions and demand above-average wages and bonuses even when losses are being incurred. They want their personal income tax paid by the SOE and light work norms. So it is not surprising that despite the economic Armageddon we have hit, many still hang on to the belief that the government should be running businesses.
The need to educate the public
The recent announcement by the government that it intends to divest its investments in Sri Lanka Telecom (SLT), Lanka Hospitals (LH), and the Sri Lanka Insurance Corporation (SLIC) has resulted in many, including the leader of the opposition, the JVP, trade unions, a few journalists and other media personnel together with some academics to say “We are against the privatization of profit-making SOEs.” Their opposition to the sale resonates with the public and supports the theory of selling the family silver.
When a young journalist posed this question to RW at a media conference, he told her in his typically offhand and condescending tone, “We have debts to settle as well.” I believe it was an opportunity lost by RW to explain through the media to the people why it makes perfect sense to dispose of the shares held in SLT, SLIC and LH.
In my opinion, when it comes to the economy and finance, most people in our country are ignorant. Many highly educated people and experts in their own field I know say, “I don’t know or understand finance.” In the last couple of years, we have seen greater discussion and information sharing on the economy and finance due to the economic crisis. However, there is still a lack of understanding and proper appreciation of the issues. The government must disseminate the policy through its media with greater focus and transparency. I have often been dismayed when RW and other government officials say, “The IMF has told us to do this and that”. Instead of passing the buck to the IMF, GOSL needs to say commonsense and financial prudence demands what we’re doing.
Why it’s sensible for GOSL
to sell its SLT stake
For me, the logic in selling the shares of profitable enterprises is evident on both financial and ideological grounds. In the case of SLT, the GOSL, through the Treasury and the Employees Trust Fund (ETF), currently own a controlling 50.9% of the company. A share of SLT trades presently at around Rs. 94 on the Colombo Stock Exchange. This means the company’s value is around Rs. 168 billion. Therefore the GOSL stake is worth around Rs. 86 billion.
However, the current market price of an SLT share is significantly overvalued due to the anticipated sale of the government stake. According to the company’s latest Annual Report, in the last 10 years up to the end of 2021, the highest price the share commanded was Rs. 57.30 in 2014. However, in 2022 the highest traded price was Rs. 78.90, whilst the lowest was Rs. 28.70. Obviously, an independent valuation would need to be carried out considering that a controlling stake is being sold. Several well-established methodologies are used in the valuation of companies.
To illustrate my point that it is beneficial for GOSL to sell out, I will assume Rs. 65 per share is the price the government will get on the deal. The GOSL would therefore be able to receive Rs. 59.7 billion by selling its SLT stake.
I have set out below the last five-year financial performance, capital expenditure and dividends paid to GOSL by the SLT Group.As can be observed, despite posting healthy profits, the dividends declared have been constrained by the high capital expenditure incurred. Given the rapid technological development and the ever-expanding use of mobile communication and the Internet, all telecommunication companies need to incur continuous capital expenditure to keep abreast.
The table shows the GOSL has only received total dividends of Rs 5.4 billion over five years, an annual average of Rs 1.1 billion a year.
So the question is whether retaining its SLT shares and earning Rs. 1 billion a year against receiving Rs. 59.7 billion as sales proceeds, is beneficial to the country or not. As stated by RW , the GOSL by selling could then utilize the Rs. 59.7 billion proceeds to retire some of its current debt and also not raise new loans as is currently done at interest rates above 20% plus. The interest saving for a year on the new debt at 20% would be Rs. 12 billion.
Opportunity cost is the criterion for making prudent financial decisions. The definition of opportunity costs is the value or benefit of what you lose or miss when you choose one alternative over another. In this instance, in case the GOSL does not sell its SLT stake at my assumed price of Rs. 65 per share, the opportunity cost foregone is Rs. 11 billion for a year.
The sale of SLT shares will not impact on our national security as the largest telecommunications operator in the country is a foreign-owned entity.
In 1997, the government, through a competitive bidding process, sold 35% of its shareholding in SLT to Nippon Telegraph and Telephone (NTT) of Japan for US$ 225 million. This was then the largest ever privatization transaction of GOSL.
The transformation of SLT under a Japanese CEO after partial privatization was immense and is often cited as an example of why SOEs should be privatized. The days when we had to wait nearly five years to get a new fixed-line connection were ended as SLT was transformed into a service-centric business enterprise. However, even after two decades, the Chairman of SLT, in his message to the shareholders in the 2021 Annual Report, laments, “In January 2020, we saw a company with immense potential, but its progress was obstructed in several areas. Staff unrest was at the top of the list with regular strikes and work stoppages leading to poor messaging (signalling) to the customers, especially the corporate sector.”
Staff remuneration cost at SLT versus its competitor
According to the latest Annual Report (AR), SLT employed 8,058 staff. In 2021 costing Rs. 20.7bn. wages. In contrast, Dialog Axiata Plc, its main competitor, with a significant market share (17.7 mn subscribers vs SLT’s 9.3 million) and revenue (Rs 142 Bn vs Rs. 102Bn) over SLT, employed only 3,631 staff with a total wage bill of Rs. 10 bn. The bottom line is that SLT incurs Rs. 10.7 bn staff costs over its competitor to service a subscriber base significantly lower than its rival. These figures reflect the cost inefficiencies at SLT and other SOEs and is the primary reason the trade unions vehemently oppose the sale of the GOSL stake.
Furthermore, Dialog Axiata Plc has stated in its Annual Report that they have invested US $ 3 Bn since inception. In 2021, they paid Rs 8.4 billion as direct taxes and collected Rs. 14.8 Billion as consumption taxes. Another benefit of privatization for the GOSL is that it stands to collect higher direct taxes from companies operating efficiently with a cost focus.
The logic I have applied to the sale of the SLT stake is equally applicable to the sale of the GOSL stakes in Lanka Hospitals and Sri Lanka Insurance Corporation.
We need to set aside, at least now, this long-held view that the government should be involved in controlling and operating businesses. The process of privatization is lengthy and, as can be seen, will meet various hurdles. However, the GOSL must be steadfast in its determination to go ahead with the planned privatization/restructuring process of SOEs and actively engage the public and educate them of the benefits.
Transparency and competitive bidding when Privatising SOEs
A mandatory requirement for privatization is that the process must be totally transparent and be based on competitive bidding. Furthermore, the base price/valuation for sale should be arrived at by an independent party so that they are no doubts that the GOSL and the people received the best possible deal.
The success of India
Sri Lanka should look across the ocean at India, which since 1991 has been following a strategy of Liberalization, Privatization and Globalization that has led to consistent economic growth; India is now considered a global economic powerhouse. A few years back, Prime Minister Narendra Modi said the government has no business to be in business, and his administration is committed to privatizing all PSUs barring the bare minimum, in four strategic sectors.
“It is the government’s duty to support enterprises and businesses. But it is not essential that it should own and run enterprises,” he said. Modi also said the Centre’s policy is to either monetize or modernize public sector enterprises on the basis that the government has “no business to be in business”.
(The views and opinions expressed in this article are of the author and are not of any institution or organization that he may be associated with.)
Features
Putting people back into ‘development’ – a challenge for South
Should Sri Lanka consider an 18th IMF programme? Some academicians exploring Sri Lanka’s development prospects in depth are raising this issue. It is yet to emerge as a hot topic among policy and decision-making circles in this country but common sense would sooner rather than later dictate that it be taken up for discussion by the wider public and a decision arrived at.
The issue of an 18th IMF programme was raised with some urgency locally by none other than Dr. Ganeshan Wignaraja,Visiting Senior Fellow, ODI Global London, one of whose presentations, made at the Regional Centre for Strategic Studies (RCSS), Colombo, was highlighted in this column last week, May 7th. An IMF programme is far from the ideal way out for a bankrupt country such as Sri Lanka but a policy of economic pragmatism would indicate that there is no other way out for Sri Lanka. Such a programme is the proverbial ‘Bird in the hand’ for Sri Lanka and it may be compelled to avail of it to get itself out of the morass of economic failures it is bogged down in currently.
While local economic growth possibilities are far from encouraging at present, such prospects globally are far from bright as well. Some of the more thought-provoking data in the latter regard were disclosed by Dr. Wignaraja. For example, ‘The IMF’s April 2026 World Economic Outlook projects global growth slowing to 3.1 percent in 2026; with downside risks dominating: prolonged conflict, geopolitical fragmentation, renewed trade tensions, bearing down hardest on emergent and developing economies.’
However, as is known, an ‘IMF bailout’ is fraught with huge risks for the people of a developing country. ‘The Silver Bullet’ brings hardships for the people usually and they would be required by their governments to increasingly ‘tighten their belts’ and brace for perhaps indefinite material hardships and discontent. For Sri Lanka, the cost of living is unsettlingly high and 20 percent of the population is languishing below the poverty line of $ 3.65 per day.
These statistics should help put the spotlight on the people of a country, who are theoretically the subjects and beneficiaries of development, and one of the main reasons, in so far as democracies are concerned, for the existence of governments. Placing people at the centre of the development process is urgently needed in the global South and shifting the focus to other considerations would be tantamount to governments dabbling in misplaced priorities.
Technocrats are needed for the propelling of economic growth but a Southern country’s main approach to development cannot be entirely technocratic in nature. The well being of the people and how it is affected by such growth strategies need to be prime focuses in discussions on development. Accordingly, discourses on how poverty alleviation could be facilitated need urgent initiation and perpetuation. There is no getting away from people’s empowerment.
In the South over the decades, the above themes have been, more or less, allowed to lapse in discussions on development. With economic liberalization and ‘market economics’ being allowed to eclipse development, correctly understood, people’s well being could be said to have been downplayed by Southern governments.
The development issues of Southern publics could be also said to have been compounded over the years as a result of the hemisphere lacking a single and effective ‘voice’ that could consistently and forcefully take up its questions with the global powers and institutions that matter. That is, the South lacks an all-embracing, umbrella organization that could bring together and muster the collective will of the South and work towards the realization of its best interests.
This columnist has time and again brought up the need for concerned Southern sections to explore the potential within the now virtually moribund Non-Aligned Movement to reactivate itself and fill the above lacuna in the South’s organizational and mobilization capability. In its heyday NAM not only possessed this institutional capability but had ample ‘voice power’ in the form of its founding fathers, with Jawaharlal Nehru of India, for example, proving a power to reckon with in this regard. The lack of such leaders at present needs to be factored in as well as accounting for the South’s lack of power and presence in the deliberative forums of the world that have a bearing on the hemisphere’s well being.
The Executive Director of the RCSS, Ambassador (Retd) Ravinatha Aryasinha, articulated some interesting thoughts on the above and related questions at a forum a couple of months back. Speaking at the launching of the book authored by Prof. Gamini Keerewella titled, ‘Reimagining International Relations from a Global South Perspective’, at the Bandaranaike Centre for International Studies, Colombo, Amb. Aryasinha said, among other things: ‘Historically, there is a precedent that has been realized by the Non-Aligned group of countries – unfortunately, rather than being reformed and modified at the end of the Cold War, it has been tossed away.’
The inability of the nominally existent NAM to come out of its state of veritable paralysis and voice and act in the name of the South in the current international crises lends credence to the view that the organization has allowed itself to be ‘tossed away.’ The challenge before NAM is to prove that it is by no means a spent force.
As indicted, NAM needs vibrant voices that could advocate value-based advancement for the global South. Moral principles need to triumph over Realpolitik. Such transformative changes could come to pass if there is a fresh meeting of enlightened minds within the South. Pakistan by offering to mediate in the ongoing conflict between the US and Iran, for instance, proved that there are still states within the South that could look beyond narrow self-interest and work towards some collective goals. Hopefully, Pakistan’s example will be emulated.
Along with Pakistan some Gulf states have shown willingness to work towards a de-escalation of the present hostilities in West Asia. This could be a beginning for the undertaking of more ambitious, collective projects by the South that have as their goals political solutions to current international crises. These developments prove that the South is not bereft of visionary thinking that could lay the basis for a measure of world peace. That is, there are grounds to be hopeful.
NAM needs to see it as its responsibility to make good use of these hopeful signs to bring the South together once again and work towards the realization of its founding principles, such as initiating value-based international politics and laying the basis for the collective economic betterment of Southern people.
Features
Artificial Intelligence in Academia: Menace or Tool?
(The author is on X as @sasmester)
I have often been told by university colleagues how soulless and dangerous ‘artificial intelligence’ (AI) is to academia and humanity. They lament that students no longer read anything as they can now get various AI programmes to summarise what is recommended which is mostly in the English language to Sinhala or Tamil or get easier versions in English itself. They get their assignments and even dissertations fully or partially written by AI. And I am led to believe that universities do not have reliable detection software to assess plagiarism and academic fraud that have been committed using AI beyond the software freely available on the internet with their own limitations. This is due to financial restrictions in these institutions. Even these common malpractices have been done mostly with the aid of free AI programmes which are readily available, which means cheating in this sense is free and mostly safe. For teachers, this is a ‘menace’ in the same way ‘copying’ once was. But its implications are far worse.
But given the global investments made over AI, it cannot be wished away despite the enormous negative impact its use has on the environment, particularly due to its massive demand for energy. So, AI is with us to stay, and it has a considerable role to play in human civilisation even though like most innovations and inventions, this too carries its own burden of negativity. In this context, instead of demonising AI and lamenting its replacement of human agency and ingenuity, one needs to think seriously about how to deal with and engage with it reflectively and pragmatically as there is much it can offer if people are intelligent enough to make rational and sensible choices.
When I am making these observations, I am restricting myself to a handful of practices involving only writing both in university-based examination processes and in the fields of creative writing.
My initial introduction to AI was through the Research Methods class I used to teach in New Delhi. In 2022, this class was supposed to go to Dharmshala in Uttar Pradesh for fieldwork training, and we needed to write a funding proposal quickly. One of the students in the class, already familiar with ChatGPT introduced by OpenAI as a free programme in 2022, did the proposal with its help before the two-hour class was over. I edited it soon after and sent it off to the university administration for funding which we received. That stint of field work was completed in five days and was the most detailed work undertaken as a training programme up to that time in the university which had considerable output ranging from a documentary film to a detailed ethnography based on the findings.
While the technical details, the format of the proposal and its basic writing were done by AI due to the time constraints the class faced, its fine-tuning was done by me and a few students. AI could not then and even now cannot undertake that level of specificity without close human intervention. But the film, the ethnography and the actual process of research had nothing to do with AI. It was the result of human labour, thinking, planning and at times creativity and ingenuity. This was an early example of how AI could coexist in an academic environment if its technical usefulness was clearly understood and potential for excesses was also understood. But this was a time, easily accessible AI was just emerging, and we did not know much about it. But I was fortunate enough to have intelligent students in my class who gave me a crash course into this kind of AI use, which I followed up with my own reading and experimentation later on. As a result, I am keener now to see how it can be used for the betterment of academic practice rather than taking an uncritically demonising position, which I know will not lead anywhere.
But how is this possible? The lamentations of my colleagues about the abuse of AI in academic practice is not unfounded. It is a serious threat that remains mostly unaddressed not only in our country but almost everywhere else in the world too. This is mostly because the advancements of AI even in day-to-day free usage have far exceeded any thoughts for actionable codes of ethics to ensure its practice is sensible and ethical. At the same time, I cannot see why a student should not use AI to correct his spelling and grammar in assignments. I also cannot see why a student cannot seek AI’s help to secure research material from secondary sources available online which I have been doing for years. For instance, the originals of specific books and rare manuscripts might not be available in any repositories in our part of the world. In such situations, what AI might find us is all we have access to in a world where we are restricted in our mobility due to semi-racist visa regimes of failed empires and former superpowers as well as our own lack of ability to travel due to our own unenviable economic conditions. But unfortunately, the materials we need are often only available in research centers and libraries in those nations.
Similarly, when it comes to academic prose, it makes no sense now to take years to translate works from multiple languages to Sinhala and Tamil. This has always been a time-consuming, cumbersome and expensive process. Non-availability of Sinhala and English translations of core originals in languages such as English, French, German and so on has been a long-term problem for our country. But this can now be done well – at least from English to our languages – quite quickly and with a very low margin for error by using specific AI programmes which are meant to do precisely this. What this means is a quick expansion of knowledge in local languages which would have ordinarily taken years to achieve or might not have been possible at all. But still, this needs significant human intervention and time towards perfection. However, I do not think AI-based translations work as well for fiction and poetry or creative works more generally. But the ability for AI to emulate nuance and feeling in language is fast emerging. These are two clear examples of improving technical abilities in research and writing in which AI can be of help.
But looking for sources of information with help the help of AI or using it as a tool to undertake essential translations from one language to another is quite different from simply using it without ascertaining the accuracy of collected information, getting AI to do all your work without any reflection or without any hard work at all, including engaging AI to do the final product in a writing assignment — be that a term paper or a work of fiction. If one proceeds in this direction, as many unfortunately do nowadays, then, our ability to think and be creative as a species will become diminished over time and our sense of humanity itself will take a toll. This is what my colleagues worry about when they say AI is making younger generations soulless.
It is here that ethical practices on how to use AI responsibly without compromising our sense of humanity must play a central role. But these ethical practices must be formally written and taught, followed by viable programmes for detection and publication if unethical practices are followed. This needs to be the case particularly in teaching institutions as well as the broader domain of creative writing. After all, what is the fun in reading a novel or a collection of poetry written by AI?
It is time people began to think about what AI can do in their own fields without falling prey to its power and their own laziness. This brings to my mind Geoffrey Hinton’s words: “There is no chance of stopping AI’s development. But we need to ensure alignment; to ensure it is beneficial to us …” Similarly, as Yann LeCun observed, “AI is not just about replicating human intelligence; it’s about creating intelligent systems that can surpass human limitations.” In this sense, it is up to us to find our edge in creativity and common sense to find the most sensible way forward in using AI.
Features
Engelbert’s 90th birthday bash
The legendary Engelbert Humperdinck, who is known for his hit songs such as ‘A Man Without Love’, ‘Release Me’, ‘Spanish Eyes’, ‘The Last Waltz’, ‘Am I That Easy To Forget’, ‘Ten Guitars’ and ‘I Can’t Stop Loving You’, turned 90 on 02 May, 2026, and there were some lovely Hollywood-related celebrations.
Before his birthday, Engelbert’s new single ‘I’ve Got You’ was released – on 23 April – and Engelbert had this to say: “‘I’ve Got You’ is especially close to my heart. It speaks to love, loyalty, and the quiet strength we find in one another”.
The main birthday event was held at The Starlight Cabaret, in Los Angeles, California, and Sri Lankan Raju Rasiah, now based in the States, and his wife Renuka, who are personal friends of Engelbert, were invited to participate in the celebrations, along with Ingrid Melicon – also a Sri Lankan, now domiciled in America.
The invitation said “An evening of music, memories and celebration. Let’s make it a night to remember!” And it certainly turned out to be a night never ever to be forgotten!

Invitees experienced a “magical entrance” with Engelbert’s name lighting up the screen and showing him performing his hit songs.
The invitees were also presented with a unique gift – a necklace with Engelbert’s face, engraved with the words “Remember, I Love You.”
Engelbert’s son, Bradley Dorsey, sang a tribute song ‘Only You’ for his dad, while Eddy Fisher’s daughters, Tricia and Joely, also got on stage to entertaining the distinguish gathering.
Engelbert didn’t perform but got on stage for the cutting of the birthday cake.
There was also a video compilation of birthday wishes from fellow celebrities, and the lineup included Gloria Gaynor, Micky Dolenz, Wayne Newton, Pat Boone, Lulu, Judy Collins, Deana Martin, Angélica María, Rupert Everett, Matt Goss, and more.

Birthday boy Engelbert Humperdinck
At 90, Engelbert is still performing. He’s on THE CELEBRATION TOUR for his 90th year, with over 50 international dates in 2026, including Australia, Germany, the US, and Canada. He’ll be at Massey Hall in, Toronto, on 06 October, 2026. He said: “The stage is my home… Canada has always been a highlight”.
He performed 60+ concerts, worldwide, in 2025, and says karaoke keeps his songs fresh: “Most of my songs are on karaoke because people love to sing them”.
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