Finance Minister Ravi Karunanayake yesterday declared that the Yahapalanaya government had managed to turn around 75 percent of the loss making public institutions since coming to power in 2015.
“There were 200 public institutions out of 403 running at a loss when we took over in 2015, but the current government has been able to turn 3/4th of them into profit making ventures and reduce the number of loss making ones to 50,” Karunanayke said.
The minister was addressing a media briefing yesterday at the signing of MoUs with five public institutions to increase their efficiency.
The MoUs were signed between the Ministry of Finance and Ceylon Electricity Board, Ceylon Petroleum Corporation, National Water Supply and Drainage Board, Airport and Aviation Services Company and Sri Lanka Ports Authority.
The fundamental objectives of these MoUs are to help public enterprises to achieve set goals by encouraging these institutions to improve their operational and financial productivity by ushering improved collective activities, modern financial methods, strong and shrewd financial management, facing competition, adopting international techniques and experiences, public accountability and productive human resources management.
The Minister also stressed that these institutions ran at a heavy loss due to the increased politicization of these enterprises under the previous regime.
“We picked five public enterprises for this MoUs as they have been making specific contribution to the country. Some elite groups are controlling these institutions. These institutions would make profits even without doing any business.
However, all of these institutions have become loss making entities due to direct political influences.
Nobody dictated us to sign these MoUs. Under the new economic vision of President Maithripala Sirisena and Prime Minister
Ranil Wickremesinghe to take this country forward, this government took these measures to relieve the existing burden from the people of this country,”he said.
Transport and Civil Aviation Minister Nimal Siripala de Silva said that the Finance Ministry itself cannot rescue the country from its current economic crisis. He pointed out that other ministers of the Cabinet and public officials should make their commitment towards these efforts.
Town Planning and Water Supply Minister Rauff Hakeem said these MoUs will help maintain these institutions with more transparency. Although certain public entities are currently making some profits, this MoUs will review the impending risks on such institutions and will propose solutions to avoid such risks beforehand.
Transport and Civil Aviation Minister Nimal Siripala de Silva, Town Planning and Water Supply Minister Rauff Hakeem and State Finance Minister Lakshman Yapa Abeywardena were also present.