Sri Lanka agrees with IMF on structural reforms, financial viability of SOEs
- CNL Reporter
- July 15, 2025
- Political
- SOEs
- 0 Comments
Sri Lanka agrees structural reforms, financial viability of SOEs to Sri Lanka government has committed to continue reforms to the International Monetary Fund on state-owned enterprises (SOEs) including settlement pf legacy debts and limiting foreign borrowing, the latest IMF document showed.
The present NPP government has opposed privatization move proposed by the previous government, but it has agreed for restructuring, the document showed. The government said both state run Ceylon Petroleum Corporation (CPC) and Ceylon Electricity Board have already included a debt repayment portion in their pricing formula already.
“We will press ahead with structural reforms to improve financial viability of SOEs,” the government has told the IMF in its Memorandum
Analysts say restructuring Sri Lanka’s state-owned enterprises (SOEs) has become extremely difficult without IMF intervention due to entrenched political patronage, weak governance structures, and resistance from powerful labour unions.
Many SOEs operate with chronic losses and inefficiencies, yet successive governments have avoided reform out of fear of political backlash and social unrest.
