The Sri Lankan Cabinet has granted approval for the establishment of a parent company to initiate the restructuring of State-Owned Enterprises (SOEs).
Last year, Sri Lanka established a special unit under the Ministry of Finance with the specific task of restructuring SOEs. The unit was tasked with identifying methods for minimizing the financial burden shouldered by the Treasury as well as enhancing the total performance of public entrepreneurship.
The Treasury will hold all equity in the company and the restructured SOEs will be made subsidiaries under it. In the general budget presented by President Ranil Wickremesinghe in November 2022, it was proposed to initiate necessary measures to restructure SOEs including Sri Lankan Airlines and Sri Lanka Telecom.
Sri Lanka has been reeling under its worst-ever economic crisis and Forex shortages since its independence in 1948. The island nation finalized a staff-level agreement with the International Monetary Fund under which an extended fund facility of US$2.9 million could be obtained. Sri Lanka has initiated a slew of measures as part of its efforts in line with the IM
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