Cabinet approval has been granted for the formal closure of 33 state-owned enterprises that are currently non-operational.
The selected state-owned enterprises are to be closed under two phases of the government’s restructuring initiative.
According to the government, these entities were originally established to fulfill objectives such as delivering public services and promoting strategic economic activities.
However, many of them no longer align with current national priorities or market demands and due to impracticality in continuing operations and poor financial performance, they have become inactive.
The government has identified that continuing to maintain these institutions, ranging from statutory bodies and state corporations to government-owned companies, do not contribute meaningfully to the national economy or public service delivery, and places an unnecessary financial burden on the state.
As such, the Cabinet approved the proposal submitted by the President, in his capacity as Minister of Finance, for the structured winding down of these state enterprises under the supervision of a newly established Special Closure Unit within the Ministry.
Addressing the post-Cabinet media briefing held today, Cabinet Spokesman Minister Nalinda Jayatissa clarified that there was no job loss due to the closure of these state enterprises.
He further said that these selected state enterprises are completely non-operational, with some only consisting of name boards.
Minister Jayatissa revealed that the decision related to the closure has been taken after discussions with the relevant state entities. (Newswire)