Govt to introduce new legislation to streamline state asset management
The Government is preparing to identify and manage state assets that have previously been neglected by successive regimes, according to a recent cabinet memorandum. On Monday, July 29, the Cabinet of Ministers approved a proposal from President Ranil Wickremesinghe, as Finance Minister, to publish the draft Bill on State Asset Management in the Government gazette and submit it to Parliament for approval.
This decision follows the Attorney General’s clearance of the draft prepared by the Legal Draftsman.
On October 17, 2022, the Cabinet approved the identification of movable and immovable non-financial assets owned, transferred, acquired, divested, or utilised by state institutions.
This includes creating a national assets register, updating it regularly, and introducing a law on state assets management to ensure state institutions receive proper benefits from these assets.
The new bill aims to expand the duties of the Comptroller General’s Office and establish a comprehensive legal framework for a national assets register and a central database for state assets.
Once enacted, the government will establish a central agency to manage public assets, aiming to prevent the misuse of government assets that has persisted for decades.
The present administration prioritises asset management to generate much-needed revenue, especially amid the ongoing economic crisis.
According to a global wealth report, Sri Lanka’s net wealth is around US$ 351 billion, with $50 billion in debt. However, Finance Ministry officials have noted that a proper assessment of assets has not yet been conducted.
The lack of proper screening, constant inspection, material, and cost management, and management supervision has led to corruption and misappropriation, resulting in significant losses to the state.
Previous attempts by governments to implement a systematic asset management process, often with foreign financial agency support, have been disrupted by opposition protests and trade unions.
The value and quality of government assets have deteriorated due to neglect and the failure to implement an effective maintenance system.
There were no proper records for the majority of over 400 State-owned Enterprises (SOEs) operating in sectors like power, energy, finance, insurance, water, aviation, health, and education.
Among these, 52 SOEs are identified as State Owned Business Enterprises (SOBEs), which are strategically important for the economy but some operate at a loss and burden the Treasury.
In 2011, Parliament authorised the then Mahinda Rajapaksa regime to take over the assets of 37 firms, including two listed companies, but there were no official records of the outcomes of this initiative. The new bill aims to address these issues by establishing a robust framework for state asset management.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!