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Govt to conclude most SOE sales by August; Srilankan by Sept

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ECONOMYNEXT –The government is expecting to conclude all the transactions related to divestiture of State-Owned Enterprises (SOE) by August this year under an ambitious reform process, the government-led State-Owned Enterprises Restructuring Unit (SOERU) said.

However, the divestiture of loss-making Srilankan Airlines is likely to be concluded by September, it said.

The SOERU has already called for bids for Request for Qualification (RfQ) to divest Hotel Developers Lanka Ltd, Canwill Holdings Pvt Ltd, Lanka Hospitals Corporation PLC, Sri Lanka Telecom PLC, Litro Gas, Sri Lanka Insurance Corporation Life Ltd., Sri Lanka Insurance Corporation General Ltd., and Srilankan Airlines.

Out of these, deadlines for the submission of RfQs for Hotel Developers Lanka Ltd, Canwill Holdings Pvt Ltd, Lanka Hospitals Corporation PLC, Sri Lanka Telecom PLC, Litro Gas, Sri Lanka Insurance Corporation Life Ltd., and Sri Lanka Insurance Corporation General Ltd. have now closed whilst for Srilankan Airlines it remains open until April 22, the SOERU said.

The International Monetary Fund (IMF) has strongly asked for SOE reforms to reduce losses in those institutions. However, Sri Lanka has yet to conclude reform in any of the select SOEs despite the island nation has declared bankruptcy two years ago. The process has been slow amid opposition from some political parties and trade unions.

“It is envisaged that all transactions other than Srilankan Airlines will be concluded by August 2024. The timeline for SriLankan airlines is likely to extend to end September 2024,” the SOERU said in a statement.

“In parallel to the divestiture process, work has been done to set up a structured, efficient and well governed process to manage the SOE sector going forward.”

“This is part of the overall reform program of the government and aims to transform SOEs in to well governed, competitive and financially disciplined entities that provide citizens with essential goods and services effectively and efficiently without being a drain on public finances.”

It said the setting up of a 100% state owned Holding Company that in turn will hold all of government shares in commercial businesses is at the heart of these reforms.

“The policy includes a sound mechanism to ensure the appointment of qualified, experienced and capable persons to the boards of both the Holding Company and SOEs.”

“Similarly, it lays down principles and policies around governance, financial discipline and disclosures which the Holding Company and all SOEs will need to adhere to. Work is currently on-going to draft a Public Commercial Businesses Act to give legal effect to these reforms.”

The SOERU also said discussions were held with leaders of the main political parties, trade unions, religious leaders and media professionals on the divestiture of the SOEs.

“If the underperforming, debt-ridden, Sri Lankan economy is to transition into a competitive, dynamic and prosperous environment, SOE reforms are non-negotiable,” it said.

“These reforms will ensure that resources are released for investment in essential but under-resourced public service obligations such as education, healthcare, energy, transportation and digitization.”

“Without these reforms public funds will continue to be wasted on poorly managed entities that, in the first place, don’t need the state’s involvement.”



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Civil society activist accuses govt. of favouring Ven. Gnanasara

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Galagodaatte Gnanasara / Viyangoda

Court of Appeal issues warrant for monk’s arrest

by Shamindra Ferdinando

Civil society activist Gamini Viyangoda on Monday (28) lambasted the NPP government for its failure to act promptly on the Supreme Court cancelling the presidential pardon granted to the General Secretary of Bodu Bala Sena (BBS) Galagodaatte Gnanasara.

Addressing a gathering at the Sri Lanka Foundation to mark the launch of ‘Rajapaksha Samagama’ and ‘Pasku Praharaye Thoththa Babala’ by Lasantha Ruhununuge and Tharindu Uduwaragedara and M.F.M., Faseer, Viyangoda alleged that President Dissanayake’s government was also acting in a manner partial to Gnanasara Thera, the way all previous governments had done.

The NPP should be ashamed of its pathetic failure to act swiftly and decisively, immediately after the Supreme Court revoked President Maithripala Sirisena’s pardon. Viyangoda said that the government owed an explanation as to why law enforcement authorities couldn’t apprehend Gnanasara, following the announcement made on 14 Sept. “For two weeks what were they doing,” he asked.

Ven. Gnanasara was sentenced, in 2018, for a six-year period for contempt of court and intimidating Sandya Eknaligoda, the wife of Prageeth Eknaligoda who disappeared in 2010. But, President Sirisena pardoned him before the convicted monk completed one year of his six-year term.

Viyangoda said that Ven. Gnanasara had openly moved about freely, launched a book and acted as if the Supreme Court ruling didn’t have any impact. Every minute Gnanasara stayed in the open it was an affront to the Supreme Court, Viyangoda said, accusing the government of shielding a wrongdoer.

Referring to certain incidents during the Yahapalana time, Viyangoda revealed that he personally sought the then Prime Minister Ranil Wickremesinghe’s direct intervention to have Ven. Gnanasara, hiding at a faraway temple, apprehended. “I met Wickremesinghe at Temple Trees. When I raised the failure on the part of police to apprehend Gnanasara, Wickremasinghe immediately called Sagala Ratnayake, who was in charge of public security at that time. Ratnayake promised to take the monk to custody the following day. The next day, Gnanasara surrendered through a lawyer.”

Viyangoda alleged that the Wickremesinghe government had shielded Vem. Gnanasara. The Wickremesinghe-Sagala Ratnayaka duo did that in style, he said, accusing the present government, too, of doing the same.

The Court of Appeal yesterday (29) issued a warrant for the arrest of Gnanasara Thera and ordered that he be produced before the court on 1 Oct.

The court further directed that the warrant be executed through the Inspector General of Police.

This happened when a motion filed by the Attorney General, seeking an order to enforce the prison sentence imposed on Gnanasara Thera, was taken up before the Court of Appeal.

The motion was heard before a Court of Appeal bench, comprising Justices Mayadunne Corea and Lakmali Karunanayake.

President’s Counsel Anura Meddegoda, appearing for Gnanasara Thera, told the court that his client was resting due to illness and requested a date to study the motion and make submissions.

But State Counsel Sajith Bandara declared that the matter concerned a criminal case and requested that the court issue a warrant if the accused failed to appear before the court.

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More cops than cones

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Colombo’s bus priority lane rule returned today, 29 September, as a pilot programme across the city and nearby areas. It applies from 6 a.m. to 9 a.m. and from 4 p.m. to 7 p.m. daily. The renewed operation covers seven designated lanes, meant to cut delays and make public transport more predictable.

Transport Minister Bimal Rathnayake said officials would monitor the trial to assess its effect on congestion and public transport efficiency. Police have told all officers to take legal action against violators. Drivers may enter a lane only in unavoidable cases, such as emergencies, exceptionally heavy traffic, or to cross it when turning.

The Lanka Private Bus Owners’ Association has welcomed the move, and Metro Bus is adding five new routes.

The rule has been revived before, and past efforts struggled with enforcement, so the pilot project’s results will matter.

(Image courtesy Hiru)

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Sajith accuses govt. of using data selectively in crucial report

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Sajith Premadasa

Opposition Leader Sajith Premadasa has said the government is attempting to paint a falsely beautiful picture of the country’s situation through the Socio-Economic Data report issued together with the Census and Statistics and the Central Bank. “They have selectively included certain information while intentionally omitting other vital facts,” Premadasa has said in a media statement. When presenting data, there must be chronological consistency and integrity. The Central Bank and the Department of Census and Statistics have no right to present outdated data to formulate a conclusion, thereby marginalising an entire segment of the population, Premadasa has argued, pointing out that their primary duty is to report accurate information to the public.

Premadasa says that up to page 18 of the report, recent data from 2023 to 2025 have been used. For main economic indicators, macroeconomic indicators, demographic data, and life expectancy, 2024 data have been used. Indicators such as external trade finance, consumer price indices, Real GDP, imports and exports, prosperity indices, and human development indices have also been compared with Asian and SAARC countries using recent data. However, for the section detailing socio-economic conditions from page 19 to page 34, the data used are exclusively from the outdated 2016–2019 period.

When discussing socio-economic conditions, the data used for household income and expenditure surveys, provincial-level conditions, housing facilities, energy consumption, cooking, and population distribution are entirely from 2016 to 2019, the Opposition Leader has said. Specifically, the data on poverty mentioned on page 33, and even the data on per capita daily food consumption capacity on page 34, belong to this old 2016–2019 timeframe. Formulating a report for the year 2026 using such outdated data is a deliberate attempt to mislead the country and its people.

Premadasa says that from page 35 onwards, fresh 2025 data have been used for sections on prosperity, demographics, the labour force, and employment. Recent data based on current market conditions have also been provided for Gross National Income (GNI) by industrial sources, food prices, imports and exports, tourism, government revenue, state debt, and interest rates.

“If the authorities can present recent data (for 2023, 2024, and 2025) for foreign debt, financial activities, financial sector trends, and money supply, why are they using 2016 and 2019 data for poverty to mislead the country?” the Opposition Leader has asked, pointing out that the main report and its summary prove that while the government uses updated data for macroeconomic aspects, it uses obsolete data regarding poverty, inequality, income distribution, and living standards. The Opposition Leader has called this a historic deception regarding the country’s poverty, asking whether the 12.11.2026 Budget will be on these false data?

Premadasa has said that the government claims that a person can survive for 30 days on Rs. 17,315, which is an absolute lie and a deception. “This Government lacks updated data or definitions for poverty. Since the country went bankrupt, a proper household income and expenditure survey has not been conducted, nor has the poverty line been accurately identified.” He questioned whether the upcoming budget, scheduled for 12.11.2026, will be based on these false and flawed data.

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