Features
Experimenting with State-Owned Enterprises
by Neville Ladduwahetty
The total number of Sri Lanka’s State-Owned Enterprises (SOEs) is reported to be 527. Of these, 55 are categorized as strategically important. According to Public Finance Data and Analysis, only 11 out of 52 SOEs have Published Financial Data up to 2022. Consequently, except for the common knowledge that the overwhelming majority of SOEs are loss making institutions, no one has a clue as to the extent of the cumulative losses incurred, nor the number employed by the SOEs.
Against this background, the public has raised concern about the privatization of the SOEs, especially the strategically important ones. The government has appointed Suresh Shah as the Head of State-Owned Enterprises Restructuring Unit (SOERU) to review and address issues relating to SOEs.
During a seminar held at the Organization of Professional Associations (OPA), Shah reportedly said: ‘To ensure transparency and effective management, the draft legislation is based on nine guiding principles stipulated in the Cabinet-approved SOE reform policy, covering board appointments, policies, financial aspects and others. Around 85 SOEs have been identified as commercial entities, out of 138 considered’.
What happens to the rest? According to Shah ‘A key highlight of the upcoming legislation is to bring SOEs under a Holding Company (HoCo) which would drive comprehensive reforms of state enterprises, the management and governance of state enterprises, and state’s portfolio of enterprises. The proposed HoCo is modelled after Singapore’s Temasek. However, it would take time and effort for this entity to evolve into modern day Temasek’ (Mirror Business, February 02, 2024).
HISTORY of Sri LANKA’s SOEs
Since Independence, the public has heard ad nauseam, words such as “transparency and effective management”. Some include “accountability” as well. The fact that the draft legislation is based on “nine guiding principles” is no assurance that the HoCo would be free to live by them without interference of one kind or another. Before addressing reforms, it is necessary to understand WHY SOEs are in the state they are in today.
SOEs are used as vehicles to practise unabated nepotism that permits the appointment of the kith and kin of politicians to the Boards of SOEs and to give employment to political loyalists for favours done during elections. Consequently, most SOEs are compelled to carry the baggage of incompetent managers who are clueless to manage a bloated workforce. It is this reality that makes SOEs loss-making institutions from the very outset. Even profit making SOEs have to cater to the behest of their political masters.
For instance, SriLankan Airlines, which was a profitable institution under an effective management, began to incur losses after the removal of key personnel because they opted to cater to the obligations of their customers in preference to the convenience of those who appointed them. Similarly, the Chairman of SLT, who ran that institution profitably, was removed, without any explanation, and a new board appointed. A request was made to them to withdraw the case they had filed against the proposed merger between Dialog Axiata and Airtel. The refusal to oblige resulted in the board being asked to resign. A new board has now been appointed.
This is the culture in which the HoCo with its ‘nine guiding principles stipulated in the Cabinet approved SOE reform policy’ would have to operate. It is a far cry from the culture in Singapore, where Temasek operates. Does the fact that only around 85 have been identified as commercial entities mean that the remaining 442, out of the total of 527 SOEs, are allowed to hang out to dry as loss-making entities because the prospect of their survival under the HoCo is remote.
Therefore, instead of limiting the scope to SOEs with commercial value, a serious attempt should be made by the SOERU to develop a strategy to make the SOEs a collective mix of profitable and loss-making entities for the service they provide so that taken as a collective, SOEs are not a burden to the State. Instead of such an approach, the objective of the SOERU appears to be to identify those that could be attractive to the private sector because of their commercial value.
In this regard, policies adopted by the private actor could go beyond the limits of commercial valuations, to others, such as Security. For instance, the attempt to sell the government’s share in Sri Lanka Telecom to either of the two shortlisted companies of Indian and Chinese origins may not only have foreign policy implications but also cause security concerns as well.
PROPOSED REFORMS for SOEs
In addition to the intended reforms proposed by SOERU at the OPA seminar, the Secretary to the Ministry of Finance has said that one of the key legislations the government is working on relates to the SOE reform Bill. What is interesting is that both the Secretary and the SOERU representative emphasised the importance of transparent procedures in the selection of Members to the Boards of SOEs. While it is indeed heartening to hear the importance given to transparency in selecting Board Members with the right credentials, history tells us that however right the credentials are, there is no guarantee that the policies they opt for would turn out to be relevant to meet the ever-changing challenges.
Instances of this kind of mismatch abound. We have had individuals with outstanding credentials in economics who advocated lowering taxes and printing money with consequences, the likes of which Sri Lanka had not experienced. Perhaps, their policies may have been right under different circumstances, but they certainly did not prove right for the economic circumstances Sri Lanka was in when they were proposed. There were others who advocated banning the import of chemical fertiliser and replacing it with compost.
They did not realise that the high yield seed paddy that was used by the farmers not only increased their incomes but also enabled the State to feed the nation which depended on the use of chemical fertiliser. Furthermore, a fact recognised by agricultural research scientists is that high yield seed paddy is not compatible with compost because of low yields. Another is the instance where a highly placed bureaucrat advocated the import of urea because it was cheaper than producing it locally, and called for the dismantling and selling the urea plant. Soon afterwards, the sale prices of imported urea increased.
PROPOSED STRATEGY
The lesson to be learnt from the few experiences cited above is that while it is important to select the right Members for the Boards of SOEs, it is equally or even more important that they adopt the right policies. Since the reason for the failure of most SOEs is fundamentally one of poor or bad management resulting from the reasons cited above, it is absolutely vital that each SOE operates under agreed guidelines that are monitored regularly by the Oversight Committees of Parliament. Furthermore, since policies need to change with changing circumstances and challenges, structural arrangements that permit regular reviews are an absolute necessity.
The following procedures are recommended to ensure that each of the 527 SOEs function and perform under the close scrutiny of Parliament:
* NO SOE should be privatised, whether they have commercial value or not. 85 of the SOEs with commercial value are invariably located on prime land. Privatising such SOEs would tempt investors to sell such lands and gain healthy returns with no regard to the contributions made to the state from their operations and the personnel employed by them.
* Each SOE should be assigned to a particular Oversight Committee of Parliament.
* Each Oversight Committee should call upon SOEs assigned to them to submit a comprehensive Policy Statement with the participation of the workforce outlining the strategies they plan to adopt to realise their objectives.
* These policy statements should be reviewed by each Oversight Committee, with the assistance of experts in the related fields, and a mutually acceptable consensus reached with each SOE, which then would become the Operating Guidelines for each SOE.
· The performance of each SOE should be reviewed by the respective Oversight Committee at regular intervals to evaluate performance and accountability.
CONCLUSION
It is reported that the government appointed State-Owner Enterprises Restructuring Unit (SOERU) is preparing legislation to address issues relating to the existing 527 SOEs. In the meantime, the Ministry of Finance is also engaged in a State-owned enterprises reform Bill. This combined effort to reform SOEs is because over the years they have become a serious financial liability to the State.
According to the SOERU, of the 138 SOEs considered, 85 have been identified as commercial entities and plans are for 17 to be formally wound down. Presumably, out of the 527 total SOEs and the 85 identified as commercial entities, the remaining 442 SOEs (less the 17 to be wound down) would have to function under forthcoming legislation that includes a Holding Company (HoCo) that would be modelled after Singapore’s Temasek, notwithstanding the cultural and historical disparity that exists between the two countries.
The need to reform SOEs so that they could be made to function as financially viable entities and in the process for them to make a positive contribution towards serving the interests of the State and provide gainful employment to thousands is long overdue. However, if the intended reforms are to have a positive impact, the reformers should acknowledge that the reason for the dire state of most SOEs today is because they have been made dysfunctional by the practices adopted by successive governments.
Judging from the sketchy media reports, the focus of the reforms appears to be on ‘transparent mechanisms to appoint board members to SOEs and put an end to the current tradition of political appointments’. Even if reforms ensure that appointments to the boards of SOEs are free of politics, it is a combination of effective boards backed by sound policies that make institutions viable and effective. Therefore, the drafts of policies developed by boards should be vetted by the workforce since the success of policies depends on their commitment to the implementation of the policy.
The draft policies developed by each SOE should be reviewed by the Parliamentary Oversight Committee and consensus reached so that such policies become the Operating Guidelines against which each SOE is regularly assessed in respect of its operations. Since policies are not static, regular reviews by Oversight Committees would enable policies to be modified to meet ever changing challenges.
What is of concern is the government’s intent to privatise most of the 85 SOEs that have commercial value regardless of whether they are profit-making or not. Since most of the SOEs are located on prime State Lands, privatising them would mean transferring state assets to private companies. Such an outcome may even amount to winding down some SOEs to the detriment of those currently employed.
The need to privatise key SOEs has arisen because successive governments have made them loss-making or less effective by resorting to practices in violation of “immutable republican principles of REPRESENTATIVE DEMOCRACY”. This makes it obligatory for the incumbent government to honour their pledge to the people and seek their approval at a referendum before disposing of assets.
Features
El Niño and Sri Lanka: Safeguarding food security in uncertain times
by Prof. Janaka Wijesinghe, Dr. Nishala Wedamulla and Gayathma Weerawanni
As climate variability becomes an increasing challenge for nations worldwide, Sri Lanka faces growing concerns over the impact of El Niño, a natural climate phenomenon that can disrupt rainfall patterns, increase temperatures, and place additional pressure on agricultural production. For a country where agriculture remains a vital part of the economy and rural livelihoods, preparing for climate uncertainty has become essential to safeguarding food security. Food security includes not only the availability of food but also access to nutritious and affordable food.
Climate-induced disruptions to agricultural production can affect all dimensions of food security. Vulnerable populations, including low-income households and rural communities, are often the most affected by fluctuations in food supply and market prices.
Cause of the phenomenon
El Niño occurs when sea surface temperatures in the central and eastern Pacific Ocean become unusually warmer than normal, influencing global weather patterns. Although the phenomenon originates thousands of kilometres away, its effects are felt across many regions, including South Asia. According to experts, in Sri Lanka, El Niño events can contribute to irregular rainfall, prolonged dry periods, higher temperatures, and changes in the timing and intensity of monsoon rains.
Sri Lanka’s agriculture sector is particularly vulnerable to these climate fluctuations and faces increasing challenges from climate variability, with the El Niño phenomenon emerging as one of the most significant threats to national food security. As global temperatures continue to rise, understanding and preparing for the impacts of El Niño has become essential for ensuring a stable food supply and protecting the livelihoods of millions of Sri Lankans. Mainly, rice, the staple food of Sri Lanka, depends heavily on reliable water availability.
Reduced rainfall during critical cultivation periods can lead to drought conditions, lower reservoir levels, and can affect paddy yields, while excessive rainfall at unexpected times can damage the crop through flooding, diseases, and poor field conditions. In addition, other crops, including vegetables, fruits, and plantation crops, may also experience productivity losses due to heat stress and water shortages. These impacts can result in food shortages, rising food prices, and reduced incomes for farming communities.
The consequences of climate-related agricultural disruptions extend beyond farmers. Reduced crop production can lead to increased food prices, greater dependence on imports, and challenges in maintaining a stable food supply. For vulnerable communities, especially small-scale farmers and low-income households, these impacts can significantly affect nutrition and livelihoods.
Need to reduce postharvest losses
In such circumstances, reducing postharvest losses becomes a critical component of national food security strategies. Food that is produced but lost after harvesting represents wasted land, water, energy, labour, and financial resources invested in the production. In Sri Lanka, significant quantities of fruits, vegetables, grains, and other agricultural commodities are lost due to inadequate harvesting practices, poor postharvest handling, unsuitable storage conditions, inefficient transportation, and limited processing facilities. During periods of climate stress, such as El Niño-induced droughts, these losses become even more serious because the available food supply is already under pressure. Minimising postharvest losses can, therefore, increase food availability without requiring additional land or agricultural inputs. Hence, strengthening postharvest management can make a major contribution to climate resilience. Improved harvesting techniques, better packaging, temperature-controlled storage, efficient transportation systems, and modern processing technologies can extend the shelf life of agricultural products and reduce wastage.
How to face challenges
Promoting small-scale processing and value addition can also help farmers preserve surplus production and maintain income during periods of market fluctuations. Achieving food security in an era of climate uncertainty requires a comprehensive approach that considers both production and preservation. Increasing agricultural productivity alone is not sufficient if a significant portion of harvested food is lost before reaching consumers. Reducing postharvest losses should be recognised as one of the most practical, cost-effective, and sustainable solutions for ensuring food availability.
Moreover, Sri Lanka has opportunities to strengthen its resilience against El Niño-related challenges. Improving climate forecasting systems and ensuring that farmers receive timely weather information can help communities make better decisions on planting dates, crop selection, and water management. Climate-smart agricultural practices, such as drought-tolerant crop varieties, efficient irrigation methods, soil conservation, and improved water storage, can reduce risks associated with changing weather patterns. Water management remains one of the most important strategies for climate resilience. Expanding rainwater harvesting, maintaining irrigation systems, and protecting watersheds can help communities manage water shortages during dry periods.
Importance of climate-smart agriculture
At the same time, Sri Lanka must continue to promote climate-smart agricultural practices. The use of drought-tolerant crop varieties, efficient irrigation systems, soil conservation methods, and improved weather forecasting services can help farmers adapt to changing climate conditions. Providing timely climate information enables farmers to make informed decisions regarding crop selection, planting schedules, and resource management.
Investment in research and innovation will also play a key role. Agricultural institutions and researchers can support farmers by developing technologies and practices suited to changing climatic conditions. Promoting crop diversification can further reduce dependence on a limited number of crops and provide alternative sources of income during periods of climatic stress.
Food security in the face of climate change requires cooperation among government agencies, farmers, researchers, private-sector stakeholders, and communities. Early warning systems, disaster preparedness plans, and supportive agricultural policies can help minimise the effects of extreme climate events. As climate uncertainty becomes the new normal, proactive measures are essential to protect Sri Lanka’s food future. While El Niño presents significant challenges, strategic planning, innovation, and collaboration can help the nation build resilience and ensure that every citizen has access to safe, nutritious, and affordable food. More importantly, policy support is crucial in building a resilient food system. Government agencies, research institutions, and the private sector must work together to develop sustainable agricultural practices and strengthen food supply chains. Diversifying food production and reducing post-harvest losses can also contribute to greater food security.
El Niño as a stark reminder
El Niño is a reminder that climate challenges do not respect geographical boundaries. While Sri Lanka cannot control global climate phenomena, it can strengthen its ability to adapt and respond. By combining scientific knowledge, sustainable farming practices, and effective planning, the nation can protect its food systems and ensure a more secure future in an era of increasing climate uncertainty.
As the climate continues to change, preparedness is no longer an option; it is a necessity for protecting Sri Lanka’s food security and the livelihoods of generations to come.
Features
Getting organised for the new arrival
BY Dr B. J. C. Perera
MBBS(Cey), DCH(Cey), DCH(Eng), MD(Paediatrics), MRCP(UK), FRCP(Edin), FRCP(Lond),
FRCPCH(UK), FSLCPaed, FCCP, Hony. FRCPCH(UK), Hony. FCGP(SL)
Specialist Consultant Paediatrician and Honorary Senior Fellow,
Postgraduate Institute of Medicine, University of Colombo, Sri Lanka.
An independent freelance medical correspondent
KEY POINTS
=Being parents of a newborn baby is a tremendous responsibility.
=To attend to the necessary chores and duties at home, the home set-up must be well organised.
=The routine care of a baby, throughout 24 hours, is a demanding one. But if things are well looked after and prearranged, it would make the task that much easier.
=It is a joint responsibility of the mother, as well as the father, and all other inmates of the same household.
At long last, the baby has arrived, and the parents will be taking him or her home. Usually in uncomplicated deliveries, even after Caesarean operations, the baby is sent home in a couple of days. It is generally a hectic time, and if steps have not already been taken to get things organised at home, it can be quite difficult for new parents. Getting things in shape should have started well before the baby’s birth, but even if he or she arrives earlier and unexpectedly, getting organised at that stage is important to make life easier for both parents. This is perhaps easier said than done, especially for a young couple, but it is a process that would pay dividends. All that is required is plenty of common sense. Getting organised for the newborn baby well in time will make life that much easier in the subsequent months and years to come.
An important thing to do is to arrange everything in the bedroom so that the ‘baby things’ are easily accessible and you know where to find each item. As an example, it should not be necessary to look high and low for nappy pins once a nappy has been put on the baby. What is advocated today is to keep the baby in the same bed as the parents, and this means an extra cot may not always be necessary. It would also provide a little more space in the room, which would otherwise have been taken up by a cot. However, a small baby cot is sometimes useful to put the baby to sleep and provide some rest and relaxation to the mother.
If the baby is kept on the same bed as the mother, there is no danger of the mother rolling over the baby during sleep, as the natural in-built maternal instincts would wake her up at the slightest touch from the baby or the tiniest noise from the baby.
Clothes and nappies
The clothes and nappies of the baby should be easily accessible and available at all times. It is not necessary to buy a new almirah or a cupboard for the baby. A couple of shelves of a cupboard that is already in the bedroom would do nicely. Even a small separate wooden or cane rack with shelves too would be more than adequate for this purpose. The secret is to still have sufficient room in your own bedroom to move about even after getting the baby’s things organised. Sweeping and cleaning the bedroom should be done every day. Some people elect to wet-mop the floor, which is a really good thing. These tasks should not take too much time and could be quickly attended to when the baby is resting quietly after a feed.
Other people in the household and perhaps the father of the baby could help in this regard. Battery torch lights and emergency lights for power failures should be kept in places that are easily accessible, even in the dark. It is no joke to start looking for these things when there is a loss of electrical power. One needs to be prepared, as such unexpected power failures are so very frequent in certain areas of the country. Incidentally, there is nothing against the use of electric fans in the bedroom where the baby is.
During very warm days, it will only make the baby more comfortable. It will not cause any illness. The same applies to air conditioners, provided they are maintained well and serviced regularly. If there is a telephone in the house, it would be worthwhile getting a cordless extension so that the mother does not have to run around in circles to answer the phone while attending to the needs of the baby. This is of course minimised completely today with the use of modern mobile phones.
Feeding the baby should not cause any problems at all. The need of the hour is to exclusively breastfeed for the first six months. THERE IS NO OTHER MILK THAT COMES EVEN CLOSE TO THE GOODNESS OF MOTHER’S MILK – FULL STOP; NO ARGUMENTS AND NO BUTS. There is extremely convincing and overriding scientific evidence for breast milk being the very best form of nutrition for a new arrival. It is the golden elixir of life, and there is nothing else, absolutely nothing else, that is as good as mother’s milk for a baby. The infant milk-food companies can even shout from the rooftops but they have no chance, whatsoever, against proven scientific medical evidence. It is also important to stress that babies need to be fed on demand and very definitely NOT BY THE CLOCK. All babies will indicate by various actions when they are hungry and feel the need to be fed.
Breastfeeding obviates need for bottles, etc.,
Exclusive breastfeeding would obviate the need for bottles, teats, cups, spoons, formula milk powder, sterilising equipment, etc. There is no extra cost involved as well. Government legislation has provided working mothers with sufficient maternity leave to feed their babies with human milk for at least the first four months. If there are ways of getting a little bit more leave to stretch it to six months, this should be explored to the fullest, as the benefits of exclusive breastfeeding are worth a lot more than money could buy. There are added benefits of breastfeeding such as control of the mother’s weight and figure as she burns up a significant number of calories in producing her milk.
When it is time to give the baby a bath, arrange everything you need around the place where you are going to bathe the baby. Towels, soap, etc., should be at arm’s length. If there is help available at home in the form of members of the extended family or domestic aides, this is the time you could really make use of them. When the mother gets used to the procedure, bathing a baby is no big deal. In most instances, it is a thing that both mother and baby would enjoy. Get the baby used to bathing as early as possible. This will prevent him or her from making an almighty fuss at bath time later on. Almost all babies love to be in water provided they are introduced to bathing very early in their lives.
The mother must arrange her mealtimes and resting periods to coincide with the times when the baby is quiet or is sleeping. Mother’s meals just need to be nutritious, and everyday foods are more than adequate. It is not necessary to go out of the way to provide her with expensive supplementary foods or additional forms of nutrition. There is no scientific evidence to say that certain foods are not good for nursing mothers. The notions of “heaty” foods and “cooling” foods have no scientific rationale.
Most authorities believe that a nursing mother could and should eat anything and everything. The only thing necessary is to provide a nicely balanced and adequate diet. The mother needs to get a sufficient and acceptable amount of sleep, especially during the day. This is particularly important because she may have to get up several times during the night to feed and change clothes of the baby. Steps must be taken to provide her with these essential periods of rest. Organising a routine to help her with this aspect would be most desirable.
Father’s work schedule
It is also advantageous for the father to get his work schedules and duties rearranged as much as possible and in such a manner so as to provide sufficient time at home to help in caring for the baby. This, of course, depends on the exact type of work that he is involved in. In each and every case, a genuine effort should be made to have quality time with the mother and the baby. This is particularly useful for the first few months of the baby’s life. As far as possible, the father should be equally involved with the rearing practices of the baby. Looking after a baby should be a shared responsibility. This process also enhances the baby developing a very beneficial and desirable bond with both parents.
The arrival of a new baby should not lead to a complete social embargo for the family. One could travel outside the home with the baby, especially if the times of travel are carefully planned to suit the requirements of the baby, such as feeding times. Even then, if the baby is breastfed, he or she could be fed almost anywhere. Some babies are, however, prone to throwing up while travelling immediately after a feed. It is generally better to avoid intensely overcrowded social gatherings, but social visiting, attending weddings and parties, with the baby in tow, are quite in order, even when the baby is just a few weeks old.
If the parents own a car, it is a good idea to get a commercially available baby car seat that is fitted to the rear seat of the car. The sooner you get the baby used to travelling in this baby seat, the better it is for all around. It is the safest way to take the baby in the car. In some of the Western countries, newborn babies are not discharged from the hospital till a car seat is fitted to the car. Unfortunately, baby car seats are not that popular in this country, but it must be pointed out that they contribute a great deal towards the safety of a baby in the case of a traffic accident.
Unnecessary expenditure
Many parents spend unnecessary amounts of money on a baby. All kinds of expensive items, such as perfumes, colognes, powders, etc., are not quite essential for a baby. The natural milky smell of a baby is quite unique. The clothes that one buys for a baby should be simple, uncomplicated, light and preferably of cotton origin. Their design should be very safe for the baby. It is best to remember that babies grow up very fast, especially in the first two years of life and tend to outgrow clothes in next to no time. Even the toys for the baby should be appropriately selected and should be very safe and eminently affordable.
There is no reason whatsoever that the expenses for a little newborn baby should be more than what one would normally need to spend on an adult.
A newborn baby should be such a joy for the entire family, including the extended family. Grandparents would usually dote on the baby. If there are other children, it is important to provide the necessary attention to them as well so that they would not feel neglected. It would prevent sibling rivalry, and the other kids would go on to love the new arrival. All newborn babies are quite a delight and not a burden, and it is definitely their right to be treated as such.
Features
Shouldn’t foreign expert be appointed MD of SLP?
by J. A. A. S.R anasinghe,
Productivity Specialist
rathula49@gmail.com
The recent appointment of Vipul Misra, an Indian national, as Acting Chief Executive Officer of Sri Lankan Airlines deserves to be viewed from a much broader perspective than simply as an appointment to a vacant position. In my view, it is a sensible and courageous decision by the Government.
Sri Lankan Airlines is a national asset operating in an intensely competitive international aviation industry. It requires specialised aviation knowledge, commercial acumen, operational discipline and international exposure. According to the report on his appointment, Misra brings more than two decades of aviation engineering and leadership experience, including experience with major Indian carriers such as Air India, Vistara, IndiGo, SpiceJet, Kingfisher Airlines and Air Deccan.
Dr. Sarath Obeysekera, a high-profile CEO and the former Managing Director of Colombo Dockyard PLC contends the appropriateness of filling senior corporate positions of the public sector from foreign nationals, when positions of high-calibre CEOs are not locally available. He says that Sri Lankan Airlines has previously benefited from expatriate professional leadership. During the Emirates management period from 1998 to 2008, British aviation professional Peter Hill led the airline through rebranding, fleet modernisation, network expansion and improvements in service standards.
The airline reported profits during several of those years, although later analysis showed that gains from aircraft sales and leaseback transactions contributed significantly to some results. Nevertheless, the airline was run with greater commercial discipline, clearer accountability and considerably less day-to-day political interference.
Following the end of Emirates management, due to direct intervention by the then President, Sri Lankan Airlines faced turbulent situations and passed through numerous chairmen, chief executives, restructuring proposals, procurement controversies and political interventions while taxpayers continued to carry its debts and losses.
It would be unfair to suggest that every Sri Lankan chairman or CEO was incompetent or corrupt. Sri Lanka has produced many outstanding aviation professionals. The deeper problem has been a governance system in which even capable executives can be weakened by political appointments, interference in commercial decisions, frequent leadership changes and the absence of measurable accountability. He says that the arrival of Indian professional leadership is not limited to aviation.
Colombo Dockyard presents another significant example. Following the acquisition of a controlling interest by India’s state-owned Mazagon Dock Shipbuilders, Capt. Jagmohan was appointed its non-executive chairman. He is a naval architect with extensive experience in warship design, naval dockyards, shipbuilding and major maritime projects. (Mazagon Dock leadership)
This partnership could give Colombo Dockyard access to capital, technology, Indian and international orders, specialised naval work and a much larger supply chain. However, because the Dockyard is an important national maritime asset, success must be measured by the creation of skilled Sri Lankan employment, expansion into commercial and offshore engineering, growth in exports, transfer of technology and development of local managerial successors—not merely by a change of ownership or boardroom nationality.
The rise of Indian professionals should not surprise us. Sundar Pichai leads Alphabet and Google, while Indian-born executives have led several other globally important technology and industrial corporations. India has built an enormous pool of engineers, scientists, accountants and managers through technical education, English-language capability, exposure to large competitive markets and international professional mobility.
India’s formal national ambition is Viksit Bharat 2047—to become a developed nation by the centenary of its independence. The target is 2047 rather than 2040, and its vision specifically combines economic growth, skills, social progress, sustainability and good governance. (Government of India)
The important lesson is that nationality should not be the principal criterion for selecting the person to lead a strategically important State enterprise. Competence should be, according to Dr. Obeysekera. This principle should now be extended to another equally important national institution — the Sri Lanka Ports Authority (SLPA), as this post has fallen vacant and an advertisement has appeared in the newspapers calling for applications from suitable applicants.
The recent discussion surrounding the vacant substantive post of Managing Director of the SLPA, including Dr. Sarath Obeysekera’s call for the appointment of a “developer, not merely an administrator”, raises a fundamental question: Are we looking for someone merely to administer the existing machinery of the Ports Authority, or someone capable of transforming Sri Lanka’s ports into major engines of investment, industry, employment and foreign-exchange earnings?
The distinction is crucial. On the other hand, one should not be over excited for the manner in which foreign nationals are employed not in hundred perhaps in thousands in manual operational activities in heavy industries in Sri Lanka. In the case of Shipbuilding and Construction industries, the deployment of welders and skilled workers have now become a norm rather than an exception.
Sri Lanka possesses enormous maritime advantages. Colombo is strategically located on one of the world’s busiest shipping routes, while Hambantota and Trincomalee offer substantial possibilities for future development. Yet the challenge is no longer simply to operate ports efficiently. The country must develop the ecosystem around them — logistics, ship repair, shipbuilding, offshore services, maritime industries, warehousing, bunkering, technology, investment and related export-oriented activities.
This requires a different type of leadership. The government should therefore consider applying the same bold thinking demonstrated in the Sri Lankan Airlines appointment to the SLPA. If the best person to transform the Ports Authority is a Sri Lankan, appoint that person. If the best candidate is an internationally recognised professional from India, Singapore, Dubai, Europe, Japan or elsewhere, why should nationality become a barrier?
Indeed, the Sri Lanka Ports Authority Act itself provides that the Minister shall appoint a “competent and experienced person” as Managing Director, whose responsibility includes directing the business, exercising the Authority’s functions and controlling its employees. That statutory emphasis on competence and experience should guide the selection.
What Sri Lanka needs is not another appointment based primarily on seniority, institutional familiarity or traditional public-sector credentials. It needs a leader with a proven international track record in port development, maritime logistics, commercialisation, investment attraction and large-scale project execution. Such a person should be given clear targets and held accountable for delivering them.
The appointment of an international professional should not be regarded as an admission of failure on the part of Sri Lankan professionals. On the contrary, it would demonstrate confidence in the principle that Sri Lanka’s national assets deserve the best available talent, wherever that talent may be found.
The government has already demonstrated this new approach through the Sri Lankan Airlines appointment. I respectfully suggest that it should now have the courage to apply the same principle to the Sri Lanka Ports Authority.
Our national assets are too valuable to be confined to a search for talent within national boundaries. The best person for the job should be given the job irrespective of nationality.
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