IMF approves government’s SOE Reform Strategy
The International Monetary Fund (IMF) has accepted the government’s new approach of adopting a different strategy for restructuring state-owned enterprises (SOEs) to enhance efficiency and reduce their financial burden on the state, IMF Deputy Mission Chief for Sri Lanka Katsiaryna Svirydzenka revealed.
Addressing a media conference in the US on Wednesday following the completion of the Third Review for the IMF Extended Fund Facility for Sri Lanka, she noted that the SOEs need to be managed in a prudent manner so as to avoid the accumulation of losses or debts that then would eventually need to be repaid by the taxpayers.
The government authorities have reassured to the IMF that they are committed to ensure that these enterprises do not become a burden for the budget or for the government debt in terms of other key elements under the programme that has been the cost-reflective pricing of services provided especially in the area of electricity and fuel.
Other commitments under the programme include making SOEs more transparent, in particular by publishing audited financial statements of the largest SOEs in a timely manner, she disclosed.
She said it is important that the consumers of services receive the best value for the price of being charged.
This new approach of the government deviates from the commitments made by the previous government, according to Labour Minister and Deputy Economic Development Minister Anil Jayantha.
While the ruling National People’s Power (NPP) party strongly opposed the previous government’s IMF agreements during its election campaign, it did not pledge to terminate the programme upon assuming office.
Minister Jayantha, speaking to the media following the IMF’s latest disbursement of $334 million to support the government’s economic policies and reforms, stated that a newly appointed committee is evaluating all SOEs to determine the best strategy for managing them efficiently while minimising the financial strain on the Treasury.
He emphasised the administration’s goal of ensuring that state institutions contribute to market stability, prevent monopolies, and provide goods and services at affordable prices while improving quality.
Minister Jayantha clarified that the IMF has not imposed or forced specific actions on Sri Lanka but has emphasised the importance of reducing the financial strain caused by inefficient SOEs.
He dismissed claims that the IMF demanded privatisation, saying that the institution would rather have a disciplined restructuring plan and not outright sale.
Restructuring entails the redesign of pricing mechanisms to align them with market conditions and the removal of subsidies that in the past have led to inefficiencies and losses. These measures are taken to ease the burden of SOEs on the national coffers.
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!