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Govt. to liquidate 33 redundant state enterprises
The government would liquidate 33 state enterprises which are no longer active nor serve any viable purpose, Cabinet spokesman Dr Nalinda Jayatissa said yesterday.
Addressing weekly cabinet press briefing Minister of Mass Media and Health Dr Jayatissa said that the firms included the budget airline Mihin Lanka, Lanka Cement Company, Lanka Logistics, Hambantota Port Management Company, Expressway Transport Company, he said.
Those state enterprises were mostly inactive with no staff, he said.
He said that the Cabinet had approved the phased winding up and closure of 33 state-owned enterprises that are no longer operational.The decision was made on a proposal presented by the President in his capacity as the Minister of Finance, Economic Stabilisation and National Policies.
A special liquidation unit is to be established under the Ministry that will oversee the formal closure of these entities.
Dr. Jayatissa said that these institutions were already inactive due to reasons such as failing to align with their original objectives, not meeting current market needs, weak financial performance, and impracticality of continuation.
He said many state enterprises, statutory bodies, and government-owned companies had been set up in the past to provide public services or promote strategic economic activities, but some of them no longer served the national economy or contribute meaningfully to state service delivery. Maintaining such institutions had become an unnecessary burden on the Treasury, he added.
Among the entities to be wound up are: Asian Games (Pvt.) Ltd., Thurusaviya Fund, Selendiva Investments, Commonwealth Games Hambantota (Pvt.) Ltd., Magampura Ports Management Company (Pvt.) Ltd., Mihin Lanka (Pvt.) Ltd., Techno Park Development Company (Pvt.) Ltd, and the Media Training Institute. The full list of 33 enterprises will be presented by the relevant Ministry, the Minister said.
Dr. Jayatissa said that the government would undertake significant intervention to restructure and revive SriLankan Airlines.Some of the firms mentioned were set up during successive Rajapaksa regimes, but Lanka Cement is an old company.
By Shyam Nuwan Ganewatte ✍️
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Fuel crunch looms
Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies
by Saman Indrajith and Norman Palihawadane
The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).
Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.
The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.
The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.
“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.
Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.
The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.
The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.
“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.
He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,
along with President Anura Kumara Dissanayake.
Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.
He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.
The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.
The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.
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