Deputy Minister of State Enterprises, Chathuranga Abeysinghe, has accused think tank Advocata Institute of publishing what he claimed was a politically motivated and misleading analysis on the performance of Sri Lanka’s state-owned enterprises (SOEs).

Responding to Advocata’s recent claims that state enterprises continue to make losses, Abeysinghe alleged that the organisation’s data was fed by the political talk show “Bai Thaksalawa” rather than verified economic sources.

“The so-called analysis claiming losses for 2025 is based on data fragments taken from biased political commentary, not real figures,” the Deputy Minister said in a Facebook post.

He argued that the “era of mismanagement in state enterprises ended in September 2024,” adding that many SOEs are now showing strong financial and social performance. “In 2023, state enterprises collectively recorded a profit of Rs. 427 billion, and in 2024, that figure rose to Rs. 538 billion. These are verifiable numbers,” he noted.

Abeysinghe noted that state ownership is not inherently inefficient, pointing to countries such as China, Vietnam, South Korea, Singapore, and India, which “strategically use state enterprises for national development.” He explained that 52 of Sri Lanka’s SOEs are designated as “strategic enterprises,” playing vital roles in maintaining essential goods and services.

“The purpose of a state enterprise is not to maximise profit but to maximise economic and social returns while improving inefficient markets,” he said.
Abeysinghe added that the government is currently drafting new legislation to strengthen the governance of SOEs, minimise political interference, and appoint qualified directors based on merit.

He dismissed claims that SriLankan Airlines or other SOEs are draining the Treasury, saying such statements are “baseless.” “SriLankan Airlines received Rs. 20 billion from its own earnings, not from taxpayers’ money,” he said.

The deputy minister further warned that widespread privatisation would transfer national profits to a few private owners and erode public competition. “If we sell everything, the profits, Rs. 538 billion last year alone, will go to private investors, not the people,” he said.

“Our policy is to reform and strengthen state enterprises so they no longer burden the Treasury, while continuing to provide social and economic benefits to the people,” Abeysinghe said.

Advocata CEO responds to criticism, cites official data

Meanwhile Advocata CEO Dhananath Fernando has responded to the criticism by Deputy Minister Abeysinghe, defending the think tank’s analysis on state-owned enterprises (SOEs) and urging the public to “read the actual data, not rhetoric.”

In a detailed statement, Fernando dismissed allegations that Advocata’s analysis was politically motivated, pointing instead to the government’s own official figures.
“I invite everyone to read page 35 of the Ministry of Finance report,” he said. “It clearly states that the 52 main state-owned enterprises recorded a total profit of Rs. 280.7 billion during the first six months of 2024, compared to Rs. 227.8 billion during the same period in 2025, a decline of Rs. 52 billion.”

Fernando further explained that much of the reported profit for 2024 came from state banks and funds that rely on citizens’ savings. “If you add up the profits of the Bank of Ceylon, People’s Bank, National Savings Bank, and the Employees’ Provident Fund, institutions listed as numbers 1, 2, 3, and 7 in the report, the combined profit is Rs. 153.25 billion,” he said.

“That means out of the Rs. 227 billion total profit recorded by 52 SOEs in the first half of 2025, Rs. 153 billion- or two-thirds- comes directly from the money of ordinary citizens: their deposits and retirement funds,” Fernando explained.

Citing further data from pages 33 and 34 of the same Finance Ministry report, he added: “These banks have lent Rs. 606 billion to state enterprises without any collateral. When you realise that 67% of the profits come from your own money, you understand how misleading these numbers can be.”

Fernando noted that his intention was not to criticise or embarrass the Deputy Minister but to promote transparency and data-driven discussion. “This note is only meant to present the correct information to the public. I have no intention of causing any personal discomfort or harm to the Deputy Minister’s reputation,” he said. (Newswire)

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Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, says a massive profit of Rs. 227 billion has been made for the Treasury from Government-Owned Businesses.

In a statement on social media, the Deputy Minister said the overall profit has decreased compared to last year, primarily due to the non-revision of electricity tariffs and the foreign exchange profit of Sri Lankan Airlines.

Chathuranga Abeysinghe further said that this wealth is created from the capital of the public and in line with market needs and efficiencies. 

“There are several loss-making businesses that were rendered inefficient by corrupt and incompetent individuals. A restructuring process has now begun to make these businesses profitable,” he said. 

Chathuranga Abeysinghe went on to note that the revenue the Treasury receives from state institutions can be further strengthened in the coming years. 

“You know that many are trying to hand over this public revenue to private capital. According to government policy, the market in this country should function efficiently through the three models: State, Private, and Cooperative,” he added. 

Deputy Minister of Industry and Entrepreneurship Development, Chathuranga Abeysinghe, made the remarks in response to a news report that Sri Lanka’s State-Owned Enterprises posted a mixed financial performance during the first half of 2025, with overall profits declining to Rs. 227.8 billion from Rs. 280.7 billion a year earlier. (Newswire)

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State Minister for Urban Development and Housing, Arundika Fernando, has announced that state enterprises are now open to private sector investments, but only at the government’s assessed value. 

This directive is in accordance with President Ranil Wickremesinghe’s instruction that state enterprises should not be offered for private sector investments below their assessed value. 

Fernando made these remarks at a press briefing held at the Presidential Media Centre on Wednesday. 

“The government has granted authorization to seek investors for various enterprises falling under the purview of the Ministry of Urban Development and Housing, with the aim of ensuring their systematic maintenance,”

He said that this move is anticipated to facilitate transparent investment procedures for establishments like the Hilton Hotel, ultimately strengthening the financial reserves of the government, distributing shares among employees, and fostering orderly management of these entities.

“President Ranil Wickremesinghe has directed not to offer state enterprises in private sector investments below their assessed value. There is no room for any private investor to acquire state enterprises below the government’s appraisal value,” Fernando stressed. (Newswire)

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Sri Lanka Podujana Peramuna (SLPP) Leader and former President Mahinda Rajapaksa yesterday called for the Government to delay any plans to privatise national assets and state-owned enterprises until after a new Government is elected. 

Issuing a statement, Rajapaksa expressed concerns that the Government’s intentions to privatise certain national assets and State-owned enterprises (SOEs) have sparked unrest among trade unions, political groups, and citizens.

He highlighted that the present Government is an interim arrangement, intended to manage the country during the remaining term of ousted President Gotabaya Rajapaksa. He argued that those in favour of privatisation should consider that selling state-owned assets during this interim period may not secure the best results for the nation.

Responding to the former President’s statement, former SLPP member MP Charitha Herath noted that every misstep of the current administration led by President Ranil Wickremesinghe has been supported by the majority of MPs representing the SLPP.  “We welcome H.E. @PresRajapaksa’s stance in these challenging times. Yet we need to uphold honesty in our political discourse. Every misstep by this administration & @RW_UNP had the support of majority of MPs of @PodujanaParty. Therefore SLPP should to oppose this in Parliament,” the MP said taking to ‘X’. 

Also reacting to the statement, Opposition MP Harsha de Silva suggested that Rajapaksa said that he has undermined President Ranil Wickremesinghe’s position, by opposing SOE reform. “So @PresRajapaksa  says NO to  @RW_UNP SOE reform. Rejuvenated by his friend, leader of @PodujanaParty has at the opportune time (for him) pulled the rug from under his feet; opposed a major plank of RW strategy. Now what for RW? Go ahead? Succumb? Dissolve?” de Silva questioned on X. (Newswire)

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The State-Owned Enterprises Restructuring Unit of the Ministry of Finance has provided an update on the divestiture process of shares held by the Government of Sri Lanka in several entities and the measures taken to manage the State Owned Enterprise (SOE) sector. 

Issuing a statement, the Finance Ministry provided a progress update on the divestiture of shares held by the government in Hotel Developers Lanka Ltd (HDL, owners of Hilton Colombo), Canwill Holdings Pvt Ltd (CHPL, owners of Grand Hyatt Colombo), Lanka Hospitals Corporation PLC (LHCP), Sri Lanka Telecom PLC (SLT), SriLankan Airlines Ltd (SLA), Litro Gas Lanka Ltd/Litro Gas Terminals (Pvt) Ltd (together LITRO), Sri Lanka Insurance Corporation Life Limited and Sri Lanka Insurance Corporation General Limited (together SLIC).

The Ministry says as of date, pre-bid meetings have been held for all entities identified for divestiture, adding that in certain instances, at the request of potential bidders with the advice of the Transaction Advisors and with approvals of the Special Project Committees (SPC) and Special Cabinet Appointed Negotiating Committee (SpCANC), the Request for Qualification (RfQ) closing dates were extended to foster greater competition.  

Deadlines for the submission of RfQs for HDL, CHPL, LHCP, SLT, SLIC and LITRO have now closed, while the deadline for SLA remains open until 22nd April 2024. 

It is envisaged that all transactions other than SriLankan Airlines will be concluded by August 2024, while the timeline for SriLankan Airlines is likely to extend to the end of September 2024.  

The Finance Ministry also said that work has been done to set up a structured, efficient and well-governed process to manage the State Owned Enterprise (SOE) sector going forward. 

This is part of the overall reform program of the government and aims to transform SOEs into well-governed, competitive and financially disciplined entities that provide citizens with essential goods and services effectively and efficiently without being a drain on public finances. 

The full statement of the Finance Ministry; 

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A section of the participants including officials of CA Sri Lanka and the guest speakers

Stepping up in its standing as the National Body of Accountants and as a leading professional body, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) took the initiative to bring together experts to focus on the highly debated restructuring process of State-Owned Enterprises (SOEs).

The enlightening forum, held on 04th March 2024, in collaboration with the Ministry of Finance, Economic Stabilisation, and National Policies, served as a pertinent platform that brought together prominent figures representing the government, industry and corporate to discuss and debate critical issues and explore potential solutions related to SOE restructuring in the country.

The event was keynoted by Dr. Indrajit Coomaraswamy, former Governor of the Central Bank of Sri Lanka, followed by an insightful panel discussion featuring Mr. Suresh Shah, Director-General of the State-Owned Enterprises Restructuring Unit, Ministry of Finance, and Mr. Reyaz Mihular, Chairman of Bairaha Farms PLC and Former Chairman of Sri Lanka Telecom. The session was moderated by Mr. Arjuna Herath, Past President of CA Sri Lanka and Chairman of the Policy Advocacy and Economic Contribution Committee (PAECC) of CA Sri Lanka.

During the forum, participants were provided with an in-depth understanding of the current landscape of SOEs in Sri Lanka and a detailed analysis of the challenges and opportunities associated with SOE restructuring, in addition to exploring the best practices and recommendations to ensure effective SOE reforms which will benefit the country on the long term.

Among those present at the event were also Mr. Heshana Kuruppu, President of CA Sri Lanka; Mr. Tishan Subasinghe, Vice President of CA Sri Lanka; Mr. Asoka Piyadigama, Chief Executive Officer of CA Sri Lanka; and Ms. Lakmali Priyangika, Chief Operating Officer of CA Sri Lanka.

The forum was the first initiative of the newly established PAECC, chaired by Mr. Herath. The committee aims to serve as a proactive and influential advocate for the accounting profession and the broader public interest in Sri Lanka. Through rigorous research, stakeholder engagement, and strategic advocacy, the committee will work to address policy matters affecting the profession, businesses, and society at large. By promoting transparency, accountability, and sustainable economic growth, PAECC also aims to enhance the integrity and effectiveness of the profession while contributing to the advancement of the nation’s economic well-being apart from continuing to play the public interest role entrusted to the profession.

Mr. Heshana Kuruppu, and Mr. Tishan Subasinghe with by Mr. Suresh Shah, Dr. Indrajit Coomaraswamy and Mr. Arjuna Herath

(From L to R) Mr. Arjuna Herath, Mr. Suresh Shah, Mr. Reyaz Mihular, and Dr. Indrajit Coomaraswamy

Mr. Heshana Kuruppu presenting a token to Mr. Reyaz Mihular

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The Ministry of Finance has called for Expressions of Interest (EOI) from consultancy firms interested in providing sell-side transaction advisory services with respect to the divestiture of four state-owned enterprises.

Issuing a statement, the Finance Ministry said its State-owned Enterprise Restructuring Unit (SRU) will place advertisements in the local and international press and via LinkedIn on Thursday, 30th of March 2023.

The Expressions of Interest (EOI) have been called from consultancy firms interested in providing sell-side transaction advisory services with respect to the divestiture of Government of Sri Lanka controlled stakes in the following enterprises: 

1. Sri Lanka Insurance Corporation Ltd 
2. Litro Gas Lanka Ltd and Litro Gas Terminals Ltd 
3. Hotel Developers Lanka Ltd (The Hilton, Colombo) 
4. Canwill Holdings Pvt Ltd (Grand Hyatt, Colombo) 

The Finance Ministry said interested firms will be required to respond to Request for Proposal (RFP) documents as well when responding to the EOI. 

Firms are free to express interest with respect to one or more of the above mentioned enterprises. Responses must be submitted on or before 4pm on 27th April 2023. 

The Ministry further stated that the Quality and Cost Based Selection (QCBS) method of the Government’s Consultant Procurement Guideline will be used to select transaction advisors. 

Meanwhile, the Ministry of Finance said it was in the process of negotiating with the International Finance Corporation (IFC), a member of the World Bank Group, to seek it services as transaction advisor for the divestiture of the government’s stakes in the following enterprises: 

1. Sri Lankan Airlines incl. Sri Lankan Catering Ltd 
2. Sri Lanka Telecom PLC 
3. Lanka Hospital Corporation PLC 

The Ministry stated that the transaction advisors will, inter-alia, assist the SRU with sell-side due diligence, valuation, data room creation, transaction strategy and marketing of the entities to be divested.

The Finance Ministry said the divestitures will be carried out by the SRU in a transparent and credible manner following an EOI / RFP process which will be published in the local and international press. Unsolicited proposals will not be entertained. (NewsWire)

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