Connect with us

Business

SOE reforms seen as bedevilled by corruption and governance issues

Published

on

The panel discussion in progress

By Lynn Ockersz

The local State Owned Enterprises (SOE) reforms process is dogged by widespread corruption and governance issues. There was general agreement on this position at a wide-ranging discussion held under the aegis of the Sri Lanka Innovators’ Forum of the Dr. Gamani Corea Foundation on October 16 at the BMICH.

The prime focus of the discussion was a paper presented by the Advocata Institute, Colombo, on ‘Public Enterprise Reforms’. Key presenters for the Institute were its senior personnel Dhananath Fernando and Ms. Rehana Thowfeek. Director General, State-Owned Enterprises Restructuring Unit of the government, Suresh Shah, chaired the discussion and moderated it.

The principal panelists at the forum and some key comments made by them are as follows:

Dhananath Fernando: ‘Markets must be allowed to function. The government has no business in business enterprises. Doing SOE reforms fast and transparently is important. Profitability should not be the only consideration in this process. It is equally important to return to the country’s ownership these assets in the form of SOEs. The owners of an SOE are the citizens of the state. However, the worrisome matter is that citizens do not have a say in how an SOE is run; neither can they exit the reforms process if the SOE’s performance is unsatisfactory.’

Rehana Thowfeek: ‘A Rs. 1.8 trillion debt is owned by SOEs. However, reforming SOEs is vital for development. Corruption too is a recurring issue in SOEs. Sri Lanka’s health sector is a case in point. Privatization, though, should be seen as a priority.’

Suresh Shah: ‘The SOE restructuring process is geared to serve the wellbeing of the public and is not directed by the IMF. Listing of SOEs is vital but governance issues are getting in the way of development. The government should invest in the public sector but a prime issue is whether money is going to the right place.’

Dr. Lloyd Fernando, chairman, Dr. Gamani Corea Foundation: ‘There is a need to look at our problems holistically. The Temasek model is vital in this connection.’

Mahendra Jayasekera, Managing Director, Lanka Wall Tiles & Lanka Tiles: ‘There is this recurring problem of politicians trying to have a say in privatized enterprises. Besides, they are notorious for their double-talk. For example, they say one thing in parliament on SOE reforms and another thing to their electorates. They do not understanding the concept of return on assets. We have a serious governance problem in the country. We need to find out what benefits would accrue to the country from SOE reforms. Besides, people are skeptical about reforms being of any use.’

Chandrasena Maliyadda, Former Secretary, Ministry of Plan Implementation, Ministry of Southern Regional Development and Ministry of Posts and Telecommunications: ‘Privatization must be carried out after studying every SOE. Each SOE is different. We do not know whether the bidders for SOEs have the capability to run them, once they take them over. The Kantale Sugar Factory is a case in point. The irony is that these bidders seek government assistance to run these SOEs once they are privatized. However, the private sector, although seen as an ‘engine of growth’ is not at all effective.

‘The main issue is that our economy has been eroding. We don’t produce, there are no vibrant entrepreneurs. There is no risk-taking. What happens in privatization is that SOEs go from one set of corrupt hands to another. We should look carefully at how we are going to privatize. Privatization, though, is no panacea. All sectors are corrupt. We need to tread carefully.’

R.H.W.A. Kumarasiri, Director General, National Planning Department: ‘Do we have a system to put the right man in the right place? Are we implementing plans effectively? Good governance is important in every sector. Are all our sectors heading in one direction or are we at cross-purposes? All relevant stakeholders in development need to communicate effectively with the public on these issues. Different models are needed for different SOEs.’



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Cyber heist at External Resources Dept: Funds diverted in email hack, CID probe underway

Published

on

Deputy Finance Minister Dr. Anil Jayantha Fernando

A suspected cyber fraud targeting Sri Lanka’s Department of External Resources has triggered a high-level investigation after hackers allegedly manipulated official email communications to divert funds to unauthorised overseas accounts, Deputy Finance Minister Dr. Anil Jayantha Fernando said.

The sophisticated breach is believed to have involved the interception and alteration of email exchanges between the Department and Export Finance Australia, raising serious concerns over vulnerabilities in the Government’s digital financial communication systems.

According to the Deputy Minister, the fraud came to light following suspicious changes detected in bank account details linked to a payment transaction involving India. This anomaly prompted officials to scrutinise prior correspondence, eventually uncovering what appears to be a coordinated cyber intrusion designed to reroute funds.

“This was not a routine technical glitch. There is clear indication of external interference where communication trails have been tampered with,” Jayantha said, noting that complaints had already been lodged with law enforcement authorities.

“Investigations are now being handled by the Criminal Investigation Department (CID), which is probing the extent of the breach, the financial losses incurred, and the possible involvement of international cybercrime networks”.

Financial analysts warn that the incident underscores growing risks faced by state institutions engaged in cross-border financing arrangements, particularly when relying heavily on unsecured or inadequately protected communication channels.

The Department of External Resources plays a pivotal role in managing Sri Lanka’s foreign-funded projects and liaising with international lenders and export credit agencies. Any compromise in its communication systems could have far-reaching implications for investor confidence and the country’s financial credibility.

Authorities are expected to review existing cybersecurity protocols across key financial institutions in the wake of the breach, with calls mounting for tighter safeguards, encrypted communications, and multi-layer verification systems for fund transfers.

Meanwhile, officials remained tight-lipped on the exact quantum of funds involved, citing the ongoing nature of the investigation. However, sources indicated that the attempted diversion was significant enough to raise alarm at the highest levels of the Finance Ministry.

The incident adds to a growing list of cyber-related financial threats confronting governments worldwide, highlighting the urgent need for robust digital governance frameworks as Sri Lanka continues to engage with international financial partners.

By Ifham Nizam

Continue Reading

Business

Sun Siyam Pasikudah marks the New Year at the shore of Sri Lanka’s rising coast

Published

on

There is something about Avurudu that naturally fills every corner of Sri Lanka with energy and connection, and this year, that spirit extended to the shores of Pasikudah. At Sun Siyam Pasikudah, part of the Prive Collection within The House of Siyam, the Sinhala and Tamil New Year was celebrated on 14 April with a vibrant, full day programme that brought together guests and team members in true festive spirit, warm, lively, and centred around shared traditions and generous feasts.

The day followed the rhythm that Sri Lankan families know well. At the auspicious hour determined by the almanac for the New Year, the hearth at The Kitchen was ceremonially lit and the milk pot set to boil, symbolising warmth, unity, and the drawing in of abundance for the year ahead. This followed another auspicious moment at noon where a Traditional Sweet Table was laid out, where kiribath, kokis, kavum, aasmi and more were on offer, prepared by the resort’s culinary team and enjoyed by guests who had gathered, some for whom this was the most natural thing in the world, and others encountering the tradition for the very first time.

From 3:00 PM onwards, the afternoon opened into games. The resort grounds hosted the full run of Avurudu classics: Kana Muttiya (Pot Breaking), Kaba Adeema (Tug of War), Banis Kama (Bun Eating Contest), Balum Pipirawima (Balloon Blowing), Kotta Pora (Pillow Fighting), the Sack Race, Spoon Race, Blindfold Yogurt Feeding, Eyeing the Elephant, and Finding the Coin on the Plate. Guests of all ages joined in, and the kind of laughter that filled the afternoon is really the only way to describe what Avurudu at its best feels like.

“Avurudu is one of those occasions where the feeling in the air does all the work. The auspicious timings, the lighting of the hearth, the sweet table, the games in the afternoon: each of these carries its own meaning, and when you observe them properly and together, the day takes on a quality that is hard to replicate at any other time of year. We wanted our guests, wherever they had travelled from, to feel genuinely part of that, not simply watching from the outside. I think the day showed that Pasikudah is a place where that kind of celebration feels entirely at home,” said Arshed Refai, General Manager, Sun Siyam Pasikudah

The celebration is also a reflection of a broader moment for this stretch of the Sri Lankan coast. Pasikudah has long been known among those who seek it out: a bay of extraordinary calm and clarity, unhurried in a way that the island’s busier coastal destinations rarely are. What has shifted in recent years is that more people are finding it. Sri Lanka welcomed over 600,000 international visitors in the first quarter of 2025, generating tourism revenue of USD 1.025 billion, and the East Coast is increasingly part of that conversation. Sun Siyam Pasikudah has been central to placing Pasikudah on that map.

The resort’s 34 pavilions, offered in one and two bedroom configurations across garden and beach settings, are styled in a way that is quietly striking: monochrome interiors with warm golden accents, spacious and well-considered, always with the ocean close by. Dining is spread across The Kitchen, The Cellar, The Slice and Grill, The Tea House, and The Bar, with destination dinners available for guests who want a private evening under the stars. Sailing excursions along the coastline, spa and wellness, and encounters with local arts and crafts complete what Sun Siyam Pasikudah offers throughout the year.

 

Continue Reading

Business

Allianz Avurudu Negam returns, easing the journey home

Published

on

During the Sinhala and Tamil New Year, a time defined by togetherness, tradition and returning home, Allianz Insurance Lanka Limited once again stood alongside Sri Lankan communities by continuing its Avurudu Negam initiative for the second consecutive year, expanding its reach to support families during the festive travel period.

Building on the positive response to last year’s programme, Allianz Avurudu Negam 2026 was shaped to make the journey home special and loved during Avurudu. In response, Allianz offered ticket refunds to eligible passengers travelling on the Galu Kumari service from Maradana, supporting passengers journeying home to celebrate the New Year with loved ones.

Passengers boarding from Maradana and Fort and travelling beyond Galle up to Belliatta were eligible for the refund, helping make the journey home more affordable at a meaningful time of year. Acknowledging that financial strain frequently continues even after the celebrations conclude, Allianz extended the refund window until 30th April, easing the cost of returning to Colombo after Avurudu.

To complement this support, Allianz added a heartfelt touch rooted in New Year tradition. Traditional oil cakes were distributed to passengers boarding from Maradana, allowing families to take a familiar symbol of Avurudu back home and share it around their festive tables.

Allianz also prioritised protection during this period. Passengers eligible for the refund were given the option to obtain free Allianz Personal Accident Insurance, reflecting the belief that protection does not end with a journey, but continues wherever people go. In addition, these passengers were included in an LKR 1 million raffle draw, as an extension of the existing campaign, offering one winner shopping vouchers redeemable at outlets of their choice and support that extends beyond the New Year season.

Continue Reading

Trending