News
New circular spells out expenditure cuts for SOEs
View(s):In a further tightening of state finances, the Finance Ministry has issued a fresh circular to State-Owned Enterprises (SOEs) which are not financed through the Government Budget, to cut down recurrent expenditure by 6% in the approved annual Budget 2023.
The circular will apply to commercial corporations, statutory boards, and government-owned companies.
The cuts to recurrent expenditure will apply across all areas except for four categories – salaries and wages, taxes, interest payments on borrowings and statutory or contractual commitments.
Boards of directors and the senior management of all SOEs are required to follow these directions strictly with immediate effect to respond to the current adverse economic conditions of the country, the circular issued by Treasury Secretary Mahinda Siriwardana states.
The instructions follows a decision by the Cabinet earlier this year to cut down a minimum of 6% of the recurrent provisions allocated by Budget 2023.
In a circular issued in January instructing state institutions to cut down at least 6% of total recurrent expenditure allocated by Budget 2023, the Treasury had noted that the Department of Public Enterprises will separately issue necessary instructions to freeze 6% of recurrent expenditure of Statutory Institutions which are not financed through the Government Budget.
Those instructions will apply to state banks, corporations, statutory boards, government companies and other state owned enterprises, in order to minimise expenditure.
The newly issued circular however, has excluded state banks from the requirement to curtail recurrent expenditure by 6%.
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!