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Significant contraction in profitability of SOE sector in first half of 2025

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Eighteen out of 52 major state-owned enterprises (SOEs) have incurred losses in the first six months of 2025, worsening fiscal pressures on the government and taxpayers, according to the Mid-Year Fiscal Report released by the Ministry of Finance.

The report has revealed a significant contraction in the profitability of the SOE sector. During the first half of 2024, the 52 entities collectively posted profits of Rs. 280.7 billion. In contrast, their combined profit for the corresponding period in 2025 has dropped to Rs. 227.8 billion—a decline of more than Rs. 52 billion.

Among the largest loss-makers are the Ceylon Electricity Board (CEB), SriLankan Airlines and the Lanka Sugar Company, all of which have recorded steep reversals compared to previous years. The CEB has posted a pre-tax loss of Rs. 13.2 billion as at 30 June 2025, a dramatic fall from profits of Rs. 144 billion in 2024 and Rs. 57.6 billion in 2023.

SriLankan Airlines has also suffered a sharp downturn, recording a pre-tax loss of Rs. 12 billion between April and June alone. The airline’s cumulative losses now stand at a staggering Rs. 628 billion. Its equity position has deteriorated to a negative Rs. 415 billion, while total liabilities have risen to Rs. 606.7 billion.

A BBC report cited by the Finance Ministry attributes the airline’s continuing losses to inadequate revenue diversification and heavy debt-servicing obligations.

The Cabinet has already approved restructuring of long-overdue debt amounting to USD 210 million and Rs. 31.4 billion, to be serviced with Treasury involvement.

Meanwhile, Lanka Sugar Company Limited has recorded a pre-tax loss of Rs. 2.6 billion as at 30 June, compared to a loss of Rs. 1.9 billion in 2024 and a profit of Rs. 2.8 billion in 2023, reflecting further deterioration in performance.

Presenting the 2026 Budget, President Anura Kumara Dissanayake said political interference, weak financial discipline and patronage-based recruitment had turned several state entities into “a heavy burden on the economy.” He noted that a number of institutions had failed to pay bank loans, taxes or employee EPF/ETF contributions. The government has already allocated Rs. 11 billion to settle overdue employee benefits and outstanding taxes.

The President said the government would shut down institutions with no commercial, regulatory or administrative value, merge agencies performing overlapping functions and reorganise those that have diverged from their core mandates.

SOEs currently in the red include the CEB, SriLankan Airlines, Lanka Sugar Company, State Engineering Corporation, Lanka Sathosa, Hotel Developers (Lanka) Ltd, State Development and Construction Corporation, Sri Lanka Rupavahini Corporation, State Timber Corporation, ITN, SLBC, State Printing Corporation, Ceylon Fisheries Harbour Corporation, National Livestock Development Board, Janatha Estate Development Board, Sri Lanka State Plantation Corporation, Sri Lanka Cashew Corporation and the Ceylon Fisheries Corporation.

A number of institutions—among them Lanka Sugar Pvt Ltd, the Janatha Estate Development Board, SLSPC, SLRC, Ceylon Fisheries Corporation, NLDB, Elkaduwa Plantations Ltd, SLBC, North Sea Ltd and Lanka Ceramics JV Corporation—have been unable to meet EPF/ETF and tax obligations and now require direct Treasury support.

Despite the pressures, the Finance Ministry notes that several major SOEs have posted stronger results. State banks have reported a combined profitability increase of Rs. 65.5 billion in the first half of the year, while the Sri Lanka Ports Authority, National Water Supply and Drainage Board and Employees’ Trust Fund Board have also improved their performance.

The government has already begun the process of closing 33 inactive institutions by 2026 and restructuring others in line with new efficiency and governance targets.



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A strong Technical and Vocational Education and Training (TVET) system equips individuals with practical, relevant, and future-oriented skills helping to innovate responsibly towards a greener and sustainable future – PM

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The Prime Minister, Minister of Education, Higher Education and Vocational Education Dr. Harini Amarasuriya participated as the Chief Guest in the international conference on ’Transforming TVET Systems for climate resilience and green jobs’ organized by Colombo Plan Staff College, Philippines together with the Ministry of Education, Higher Education and Vocational Education Sri Lanka on 24 th of March at Courtyard by Marriott Colombo, Sri Lanka.

The Conference serves as the flagship event of the five-day Regional Programme on “Transforming TVET for a Digital, Green, and Inclusive Economy” (23-27 March 2026), which continues throughout the week, bringing together representatives from CPSC member countries including Bhutan, Fiji, Malaysia, Maldives, Myanmar, Nepal, Philippines, Thailand, Pakistan, and Sri Lanka, fostering high-level dialogue and knowledge sharing on climate-resilient and green skills development.

The Conference features technical and plenary sessions on climate-responsive TVET systems, green skills development, national policy frameworks, and emerging technologies shaping industry transformation.

Addressing at the event, the Prime Minister emphasized the role of Technical and Vocational Education and Training (TVET) that equips individuals with practical, relevant, and future-oriented skills in addressing climate change and shaping a sustainable future.

The Prime Minister reaffirmed that this transformation remains a national priority for Sri Lanka. She stressed that education must go beyond knowledge dissemination to empower individuals with opportunities, dignity, and the capacity to contribute meaningfully to society.

She further emphasized the need to integrate environmental sustainability into education and training systems by embedding green skills in curricula, investing in modern training facilities, promoting innovation, and fostering collaboration between training institutions and emerging green industries.

Highlighting the importance of ensuring equity the Prime Minister further stated, that opportunities arising from the green transition must be accessible to all, including youth, young women, people with special needs, and marginalized communities.

Reaffirming Sri Lanka’s commitment to working closely with regional and international partnerships, the Prime Minister emphasized the importance of transforming them to actual benefits and partnerships.

The occasion was attended by the Secretary to the Ministry of Education, Higher Education and Vocational Education  Nalaka Kaluwewa, Additional Secretary (Vocational Training) Ms. Samanthi Senanayake Director General Colombo Plan Staff College Prof. Dr. Suresh K. Dhameja , TVET administrators, institutional leaders, policymakers, instructors, industry representatives, and international delegates from across the region and seniors officials and officials from Ministries.

(Prime Minister’s Media division)

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PM reviews progress of the committee appointed for the establishment of a National Nursing University

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A discussion to review the current progress of the special committee appointed under the government’s policy proposals to establish a National Nursing University aimed at elevating the nursing profession in Sri Lanka to degree level was held on 23rd of March at the Prime Minister’s Office under the patronage of Prime Minister Dr. Harini Amarasuriya.

During the meeting, the Prime Minister inquired into the progress made by the committee in relation to the establishment of the Nursing University and paid attention to the issues and views presented by the committee members.

Emphasizing that establishing a university is a long-term and complex process, the Prime Minister pointed out the importance of advancing this project in line with higher education standards, without hasty decisions, while also taking into account the existing conflicts and challenges within the university system.

The meeting was attended by the Vice Chairman of the University Grants Commission, Professor K. L. Wasantha Kumara, representatives of the All Ceylon Nurses’ Association, and officials from the Ministry of Health and Mass Media.

(Prime Minister’s Media Division)

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Heat Index at ‘Caution level’ in the Western, Sabaragamuwa, Southern and North-western provinces and in Anuradhapura, Mannar, Vavuniya and Monaragala districts

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Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre of the Department of  Meteorology
at 3.30 p.m. on 25 March 2026, valid for 26 March 2026.

The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Western, Sabaragamuwa, Southern and North-western provinces and in
Anuradhapura, Mannar, Vavuniya and Monaragala districts.

The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.

ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.

Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry
of Health in this regard as well. For further clarifications please contact 011-7446491.

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