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Advocata calculates 55 SOEs have lost a cumulative Rs. 1.2 trillion from 2006-2020

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As many as 55 State Owned Enterprises (SOEs) have suffered a staggering Rs. 1.2 trillion cumulative losses from 2006-2020, says Colombo-based independent policy think tank Advocata.

The combined loss per day of the Ceylon Petroleum Corporation, Ceylon Electricity Board, SriLankan Airlines, Sathosa and the National Water Supply and Drainage Board is about LKR 384,479,189, according to data  for the year 2019, said Prof. Rohan Samarajiva, a veteran  policy expert  and an adviser of the Advocata Institute addressing a press briefing organized to highlight the urgency of carrying out  reforms in SOEs.

“The basic issue is that we, in this country, are suffering from a twin deficit. We need to  get started on addressing the core problem. Big, ponderous, government enterprises are not responsive to our needs. And because they’re not responsive, you will go home today and you will have a blackout of one hour, because they’re load shedding during peak hours,” said Samarajiva.

According to him privatizing a globally visible, yet loss making SOE’s such as SriLankan  Airlines is the best solution to create confidence among investors that Sri Lanka is serious about reforms.

Sri Lanka’s SOE are a serious burden on public finances. With the economic crisis reaching a tipping point, it is becoming increasingly impossible to keep these  loss making enterprises  afloat. Continuing to do so at the expense of the taxpayer can have serious consequences to the economic trajectory of the nation, Samarajiva said.

The massive loses have been incurred in a backdrop of the country wading through a serious debt crisis with questions  surrounding our ability to meet  forthcoming debt obligations.

The briefing brought together a panel of industry experts who  rang alarm bells on why Sri Lanka cannot afford to be complacent about State Owned Enterprise reforms anymore.

Prof. Samarajiva, explained the  seriousness of this issue along with how privatization can achieve positive outcomes for the country.

“In 1997, Sri Lanka Telecom was making losses and providing bad services. Today, after  privatization, it is  providing us with good services and employment at rates double what employees were earning (under the previous state-owned dispensation). It is also providing the government with a dividend which  generated billions to the government”.

He highlighted that the country has no other alternative  to prevent the hemorrhaging losses of SOEs apart from privatization.

“Privatization is not  a one size fits all model,  it is different in different countries and sectors – as seen in the telecommunication industry in Sri Lanka – with a good regulator we can have competition, leading to greater  efficiency and making technology accessible to the common public,” commented  Ms. Anarkali Moonesinghe, Advisor to the Advocata Institute.

She further elaborated that  possible avenues for privatization  that can be considered include  listing of SOEs on the  stock exchange. According to Moonesinghe, “our stock market could use large capital companies that are owned by the government today. It not only gives people ownership but also  broadens ownership by giving the average person an opportunity to become a direct stakeholder of these enterprises. This can be a better option than attaching the person through taxpayer money or having your EPF/ETF being invested in these enterprises”.



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French Ambassador pledges support for relief efforts

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A meeting between the Secretary to the President, Dr. Nandika Sanath Kumanayake and the French Ambassador to Sri Lanka,  Rémi Lambert, was held on Tuesday (09) afternoon  at the Presidential Secretariat.

During the discussion, the French Ambassador assured the Secretary to the President that the French Development Agency would extend its support to the Government’s programme for providing relief to those affected by Cyclone Ditwah and for rebuilding Sri Lanka. He further stated that steps are being taken to dispatch a team of experts to the country in the near future.

The Deputy Head of Mission at the French Embassy, was also present on this occasion.

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India extends multi-front support to Sri Lanka’s cyclone relief efforts

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India has strengthened its humanitarian support to Sri Lanka in the aftermath of Cyclone Ditwah, providing critical air assets, emergency supplies, engineering equipment and medical aid to bolster national rescue and recovery operations.

India dispatched an additional MI-17 helicopter to assist the Sri Lanka Air Force (SLAF) in ongoing air rescue missions on Tuesday (09). Two MI-17 V5 helicopters of the Indian Air Force had been operating in Sri Lanka from 29 November, conducting around 90 sorties, rescuing approximately 270 survivors, airlifting about 50 tonnes of relief material to inaccessible areas and relief camps and deploying 57 Sri Lankan troops to cut-off locations.

Having completed their flying hours, the two helicopters returned to India on Sunday (08) for mandatory maintenance and a fresh MI-17 aircraft arrived at Katunayake Airport to continue operations alongside the SLAF.

The aviation support comes alongside major maritime assistance. The Indian naval vessel INS Gharial arrived at the Port of Trincomalee on Sunday (08) carrying a 700-tonne humanitarian shipment, marking India’s fifth naval relief consignment to Sri Lanka, apart from 10 aircrafts and 5 helicopters, which have contributed towards rescues and relief operations, since the cyclone.

The shipment included essential food supplies such as pulses, sugar and milk powder, as well as bed sheets, towels, sarees, dhotis and tarpaulins for families displaced by flooding and landslides. The emergency aid is being directed to the hardest-hit districts through local relief agencies.

In a further show of engineering support, India has also handed over a 63-ton Bailey bridge and a consignment of essential medicines to Sri Lankan authorities to restore connectivity and meet urgent medical needs in affected communities.

The cargo was received by General Chaminda Wijerathne of the Sri Lanka Army Headquarters, Sunil Jayaweera, former Director Preparedness of the Disaster Management Centre (DMC), now volunteering in the response and Shan Pathirana, Deputy Director of the DMC Awareness Division.

The handover was facilitated by the Indian High Commission in Colombo.

These coordinated air, sea and engineering initiatives underscore India’s continued commitment to supporting Sri Lanka during its national emergency response and long-term recovery. The assistance forms part of India’s broader partnership to restore essential services, reconnect isolated communities and provide relief to thousands affected by Cyclone Ditwah.

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Relief Cargo from the UAE arrives in Sri Lanka

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In a significant gesture of solidarity and support, a relief cargo from the United Arab Emirates has been officially received in Sri Lanka.

The cargo was accepted by key representatives from the Middle East Division of the Ministry of Foreign Affairs, including Ms. Ishara De Silva and Ms. Sajeeda Rasheed, both serving as Assistant Directors.

Joining them were  Sunil Jayaweera, a former Director of Preparedness at the Disaster Management Center (DMC), who has returned to volunteer after retirement and . Shan Pathirana, Deputy Director of the Awareness Division at DMC.

The cargo was presented by the Deputy Head of Mission, representing the UAE, highlighting the strong ties and commitment to humanitarian aid between the two nations.

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