State-Owned Enterprises in Sri Lanka continue to suffer massive losses in 2019

Aneetha Warusavitarana, Research Manager of the Advocata Institute was featured in the News1st English Prime Time Bulletin that was aired on the 26th of June at 9.00 PM. Discussing the loss-making SOEs Aneetha recommended reforms which include compiling a comprehensive list of all State-Owned entities, an ongoing monitoring setup with a clear framework to track Key Performance Indicators in line with the OECD’s guidelines on corporate governance of state enterprises and strengthening the Parliamentary Committee on public accounts, and the Parliamentary Committee on public enterprises to improve accountability within the system

“In 2019 the total losses sustained by the key 52 state entities amounted to rupees 151 billion, with budgetary support amounting to 49 billion. Of this 49 billion budgetary support, 20 billion was allocated for recurrent expenditures on salaries and overhead costs. The key reason for these losses is the lack of oversight and governance structures in state enterprises” 

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