Connect with us

News

MR asks Ranil to suspend privatisation projects

Published

on

Mahinda Rajapaksa Ranil Wickremesinghe

SLPP leader Mahinda Rajapaksa, MP, has asked President Ranil Wickremesinghe to suspend ongoing privatisation projects, pending the conclusion of the presidential polls scheduled for Sept/Oct this year.

Former President Rajapaksa has said in a media statement: “The present government is an interim arrangement formed to run the country for the remainder of former President Gotabaya Rajapaksa’s term. Even the pro-privatisation lobby should realise that the hasty divestiture of state-owned assets at a time like this will not produce the best outcome for the country. Furthermore, the next Presidential Election is only a few months away.

Hence, as a measure to ease the widespread discontent over the government’s divestiture drive, I wish to propose that all moves to sell off stateowned assets or enterprises be postponed until a new government is formed after the next Presidential Election. The new government will then be able to deal with state-owned properties and enterprises  in accordance with the mandate they obtain at the election.”

Full text of the statement:

“The government’s plans to sell off certain national assets and state owned enterprises have given rise to discontent among trade unions, political parties and the general public. The present divestiture drive is ostensibly aimed at minimizing govt. expenditure on loss-making state-owned enterprises and meeting certain IMF conditions in that regard. I ruled the country for more than nine years, from November 2005 to January 2015, without ever selling a single state-owned enterprise. In fact, my government actually re-acquired some state-owned enterprises, such as the Insurance Corporation, and Lanka Hospitals, that had been sold off by previous governments, and these enterprises continue to make profits for the state to date.

My government had a pragmatic approach towards state-owned assets and enterprises. If a state-owned enterprise was making profits and providing a good service to the public, we saw no reason to privatize it. At times, a government may take a strategic decision to manage the prices of certain goods or services produced by state-owned enterprises for the overall benefit of the economy or to help low-income earners. The energy sector is a good example of this. There is no government in the world that does not subsidise certain earmarked economic activities.

During my tenure as President, even if some state-owned enterprises made losses due to a government decision to manage prices, our management of the economy resulted in an unbroken nine-year economic boom. We had no difficulty in paying off our debts or meeting the costs of the subsidies we maintained and nobody even spoke of privatisation when I was President. Since the divestiture of certain sectors can have far reaching consequences for the country, especially when foreign parties are involved, this is an issue that has to be approached with caution.

As was resolved at the SLPP May Day rally, any restructuring of state-owned enterprises should take place with maximum transparency, according to a national plan, in a manner consistent with national security and in consultation with the employees.

Having said that, I wish to stress that the trade union sector, for its part, should take a more nuanced approach towards private sector participation in state-owned enterprises. Going by the dictionary definition of privatisation, any involvement of the private sector in the ownership structure or the control of a state-owned asset or enterprise can be characterized as privatisation. However, trade unions should not oppose every attempt to obtain foreign or private sector investment in a government owned enterprise. A pragmatic and non-dogmatic approach to such matters is required.

If there are unutilized government properties or underperforming government enterprises, it makes sense to obtain private sector participation to turn such enterprises around. If a profitable state-owned enterprise needs further investment to add a new feature which cannot be financed by the government, it makes sense to award a share of that enterprise to a private investor in exchange for the investment. If an investor is willing to build a new enterprise from scratch, it makes sense to award shares in that enterprise to the investor so that a new state asset comes into being.

Some political parties have an ideology driven, dogmatic approach to privatization and seeks to privatize anything and everything that can be privatized. Many trade unions also have a similarly dogmatic attitude and tend to oppose any involvement of the private sector in state-owned enterprises. Both these extremes are harmful to the country. Trade unions should regard proposals to obtain private or foreign participation in a state-owned enterprise on a case by case basis and look at the overall benefit of such collaboration to the country.

The only real way national assets and strategically important state-owned enterprises can be safeguarded is by having a government that takes a pragmatic and non-dogmatic approach to such matters. This is why it is important to take note of the fact that when I ruled the country for more than nine years, the economy flourished and there was not even a discussion on the subject of privatisation.”



Latest News

Landslide Early Warnings issued to the Districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya

Published

on

By

The Landslide Early Warning Center of the the National Building Research Organaisation [NBRO] has issued landslide early warnings to the districts of Badulla, Kandy, Matale, Monaragala and Nuwara Eliya for a period of 24 hours effective from 1200 noon today [07th January].

Accordingly,
LEVEL III RED landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Udadumbara in the Kandy district, and Nildandahinna and Walapane in the Nuwara Eliya district.

LEVEL II AMBER landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Kandaketiya in the Badulla district, Wilgamuwa in the Matale district, and Mathurata and Hanguranketha in the Nuwara Eliya district.

LEVEL I YELLOW landslide early warnings have been issued to the divisional secretaries divisions and surrounding areas of Meegahakiwula, Lunugala, Welimada, Passara, Badulla and Hali_Ela in the Badulla district, Doluwa in the Kandy district,Ambanganga Korale in the Matale district, and Bibile in the Monaragala district

Continue Reading

News

Prez seeks Harsha’s help to address CC’s concerns over appointment of AG

Published

on

Chairman of the Committee on Public Finance (CoPF), MP Dr. Harsha de Silva, told Parliament yesterday that President Anura Kumara Dissanayake had personally telephoned him in response to a letter highlighting the prolonged delay in appointing an Auditor General, a vacancy that has remained unfilled since 07 December.

Addressing the House, Dr. de Silva said the President had contacted him following the letter he sent, in his capacity as CoPF Chairman, regarding the urgent need to appoint the constitutionally mandated head of the National Audit Office. During the conversation, the President had sought his intervention to inform the Constitutional Council (CC) about approving the names already forwarded by the President for consideration.

Dr. de Silva said the President had inquired whether he could convey the matter to the Constitutional Council after their discussion. He stressed that both the President and the CC must act in cooperation and in strict accordance with the Constitution, warning that institutional deadlock should not undermine constitutional governance.

He also raised concerns over the Speaker’s decision to prevent the letter he sent to the President from being shared with members of the Constitutional Council, stating that this had been done without any valid basis. Dr. de Silva subsequently tabled the letter in Parliament.

Last week, Dr. de Silva formally urged President Dissanayake to immediately fill the Auditor General’s post, warning that the continued vacancy was disrupting key constitutional functions. In his letter, dated 22 December, he pointed out that the absence of an Auditor General undermines Articles 148 and 154 of the Constitution, which vest Parliament with control over public finance.

He said that the vacancy has severely hampered the work of oversight bodies such as the Committee on Public Accounts (COPA) and the Committee on Public Enterprises (COPE), particularly at a time when the country is grappling with a major flood disaster.

As Chair of the Committee responsible for overseeing the National Audit Office, Dr. de Silva stressed that a swift appointment was essential to safeguard transparency, accountability and financial oversight.

In a separate public statement, he warned that Sri Lanka was operating without its constitutionally mandated Chief Auditor at a critical juncture. In a six-point appeal to the President, Dr. de Silva emphasised that an Auditor General must be appointed urgently in the context of ongoing disaster response and reconstruction efforts.

“Given the large number of transactions taking place now with Cyclone Ditwah reconstruction and the yet-to-be-legally-established Rebuilding Sri Lanka Fund, an Auditor General must be appointed urgently,” he said in a post on X.

By Saman Indrajith

Continue Reading

News

Govt. exploring possibility of converting EPF benefits into private sector pensions

Published

on

The NPP government was exploring the feasibility of introducing a regular pension, or annuity scheme, for Employees’ Provident Fund (EPF) contributors, Deputy Minister of Labour Mahinda Jayasinghe told Parliament yesterday.

Responding to a question raised by NPP Kalutara District MP Oshani Umanga in the House, Jayasinghe said the government was examining whether EPF benefits, which are currently paid as a lump sum at retirement, could instead be converted into a system that provides regular payments throughout a retiree’s lifetime.

“We are looking at whether it is possible to provide a pension,” Jayasinghe said, stressing that there was no immediate plan to abolish the existing lump-sum payment. “But we are paying greater attention to whether a regular payment can be provided throughout their retired life.”

Jayasinghe noted that the EPF was established as a social security mechanism for private sector employees after retirement and warned that receiving the entire fund in a single installment could place retirees at financial risk, particularly as life expectancy increases.

He also cautioned that interim withdrawals from the EPF undermined its long-term sustainability. “Even the interim payments that are given from time to time undermine the ability to give security at the time of retirement,” he said, distinguishing the EPF from the Employees’ Trust Fund, which provides more frequent interim benefits.

Addressing concerns over early withdrawals, the Deputy Minister explained that contributors have been allowed to withdraw up to 30 percent of their EPF balance since 2015, with a further 20 percent permitted after 10 years, subject to specific conditions and documentary proof.

Of 744 applications received for such withdrawals, 702 had been approved, he said.

The proposed shift towards an annuity-based system comes amid broader concerns over Sri Lanka’s ageing population and pressures on retirement financing. While state sector employees receive pensions funded by taxpayers, including EPF contributors, the EPF itself has been facing growing strain as it is also used to finance budget deficits.

Jayasinghe said the government’s focus was to formulate a mechanism that would ensure long-term income security for private sector employees, placing them on a footing closer to a pension scheme rather than a one-time retirement payout.

Continue Reading

Trending