IMFsays Sri Lanka’s SOE restructuring possible without privatization
- CNL Reporter
- March 5, 2025
- Political
- IMFsays Sri Lanka’s SOE restructuring possible without privatization
- 0 Comments
Sri Lanka can restructure its state-owned enterprises (SOEs) without privatizing, but they should not be a burden to the island nation’s tax payers or government debts, a top International Monetary Fund official said.Restructuring Sri Lanka’s loss-making SOEs is crucial for stabilizing the country’s economy, reducing fiscal deficits, and ensuring long-term financial sustainability.
The previous government under former President Ranil Wickremesinghe attempted to privatize some SOEs, but failed due to lack of interest by investors amid delays.Trade unions in SOEs protested against the move citing that it could force many state employees out of jobs.
“On the SOE restructuring, the most crucial element is that the state owned enterprises are managed in a prudent manner so as to avoid accumulation of losses or debts that will eventually need to repay by the taxpayers,” Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka, told reports on Tuesday (04) in a virtual post-IMF third review completion media briefing.
