Reforming State-Owned Enterprises (SOES) to Facilitate the Economic Recovery of Sri Lanka

PDF (English)
Опубликован: Dec 31, 2023
DOI: https://doi.org/10.12681/hapscpbs.36691
Tharindu Udayanga Kamburawala
Lecturer, Department of Economics, University of Sri Jayewardenepura, Sri Lanka.
Dilmini Hasintha Abeyrathne
Research Assistant, Lakshman Kadirgamar Institute, Sri Lanka.
Аннотация

The economic downturn and escalating debt levels prompted Sri Lanka to seek assistance from the International Monetary Fund (IMF), resulting in the formulation of the 17th IMF program. This program, aimed at fiscal consolidation and restructuring, designates SOEs as a pivotal element in the nation's economic recovery strategy. This policy brief addresses the imperative need for reforming State-Owned Enterprises (SOEs) in Sri Lanka. A historical overview reveals the evolution of Sri Lanka's SOEs, from their establishment during World War II to a surge in numbers in the 1980s. Despite their vital role in the economy, SOEs have faced operational inefficiencies, financial struggles, and governance issues, leading to a privatization policy in 1988. The document explores international experiences in SOE reform, drawing insights from successful models in Singapore, China, and India. Current policy measures in Sri Lanka encompass various reform strategies, such as corporatization, restructuring, and commercialization, focusing on enhancing financial transparency and accountability. The establishment of the State-Owned Enterprise Restructuring Unit (SRU) reflects a commitment to effective implementation, with international support from entities like the International Finance Corporation (IFC). In conclusion, the path to economic recovery in Sri Lanka hinges on the successful transformation of SOEs, ensuring financial viability, transparency, and sustainable growth.

Article Details
  • Раздел
  • Articles
Лицензия Creative Commons

Это произведение доступно по лицензии Creative Commons «Attribution» («Атрибуция») 4.0 Всемирная.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Скачивания
Данные скачивания пока недоступны.
Биография автора
Tharindu Udayanga Kamburawala, Lecturer, Department of Economics, University of Sri Jayewardenepura, Sri Lanka.

The economic downturn and escalating debt levels prompted Sri Lanka to seek assistance from the International Monetary Fund (IMF), resulting in the formulation of the 17th IMF program. This program, aimed at fiscal consolidation and restructuring, designates SOEs as a pivotal element in the nation's economic recovery strategy. This policy brief addresses the imperative need for reforming State-Owned Enterprises (SOEs) in Sri Lanka. A historical overview reveals the evolution of Sri Lanka's SOEs, from their establishment during World War II to a surge in numbers in the 1980s. Despite their vital role in the economy, SOEs have faced operational inefficiencies, financial struggles, and governance issues, leading to a privatization policy in 1988. The document explores international experiences in SOE reform, drawing insights from successful models in Singapore, China, and India. Current policy measures in Sri Lanka encompass various reform strategies, such as corporatization, restructuring, and commercialization, focusing on enhancing financial transparency and accountability. The establishment of the State-Owned Enterprise Restructuring Unit (SRU) reflects a commitment to effective implementation, with international support from entities like the International Finance Corporation (IFC). In conclusion, the path to economic recovery in Sri Lanka hinges on the successful transformation of SOEs, ensuring financial viability, transparency, and sustainable growth.

Библиографические ссылки
Advocate. (2019). The State of State Enterprises in Sri Lanka. Colombo: Advocate Insitute.
Agarwal, R. (2022). India’s State-Owned Enterprises. Washington: International Monetary Fund.
Athukorala, P.-c., Ginting, E., Hill, H., & Kumar, U. (2017). THE SRI LANKAN Economy; CHARTING A NEW COURSE. Manila: Asian Development Bank.
CBSL. (2021). Annual Report. Colombo: Central Bank of Sri Lanka.
CBSL. (2021). Fiscal Policy and Government Finance. Colombo: Central Bank of Sri Lanka.
CBSL. (2021). Restrategising State Owned Enterprises as Growth Facilitators. Colombo: Central Bank of Sri Lanka.
Chen, C. (2016). Solving the Puzzle of Corporate Governance of State-Owned Enterprises: The Path of the Temasek Model in Singapore and Lessons for China. Northwestern Journal of International Law and Business, p. 303.
Guluzade, A. (2020). How reform has made China's state-owned enterprises stronger. World Economic Forum.
IMF. (2022, September 01). PRESS RELEASE NO. 22/295; IMF Staff Reaches Staff-Level Agreement on an Extended Fund Facility Arrangement with Sri Lanka. Available at: https://www.imf.org/en/News/Articles/2022/09/01/pr22295-imf-reaches-staff-level-agreement-on-an-extended-fund-facility-arrangement-with-sri-lanka#:~:text=%E2%80%9CThe%20Sri%20Lankan%20authorities%20and,equivalent%20to%20US%242.9%20billion (Accessed: 25/10/2023).
IMF. (2023). IMF Country Report No. 23/116, REQUEST FOR AN EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY—PRESS RELEASE; STAFF REPORT; AND STATEMENT BY THE EXECUTIVE DIRECTOR FOR SRI LANKA. Washington, D.C.: International Monetary Fund.
IMF. (2023, July 20). International Monetary Fund. Retrieved from List of Members' Date of Entry. Available at: https://www.imf.org/external/np/sec/memdir/memdate.htm (Accessed: 25/10/2023).
Kelegama, S., & Dunham, D. (1995). Economic Reform and Governance: the second wave of liberalization in Sri Lanka 1989- 93. Colombo: Institute of Policy Studies of Sri Lanka.
Kim, C. J., & Ali, Z. (2017). Efficient Management of State-Owned Enterprises: Challenges and Opportunities. Tokyo, Japan: Asian Development Bank Institute.
Kim, K., & Panchanatham, N. (2019). REFORM AND PRIVATIZATION OF STATE-OWNED ENTERPRISES IN INDIA. Tokyo: Asian Development Bank Institute.
Ligang, S. (2018). State-owned enterprise reform in China: Past, present and prospects. In China’s 40 Years of Reform and Development: 1978–2018 (pp. 345–374). Australian National University Press.
MoF. (2018). Annual Report. Colombo: Ministry of Finance.
MoF. (2020). Annual Report. Colombo: Ministry of Finance.
MoF. (2023, November 13). State-Owned Enterprise Restructuring Unit. Available at: https://www.treasury.gov.lk/web/sru/section/divestitures (15/11/2023).
Newswire. (2023, April 11). New Fuel Companies: Three updates. Abailable at: https://www.newswire.lk/2023/04/11/new-fuel-companies-three-updates (Accessed: 15/11/2023).
Robinett, D. (2006). The Challenges of State-Owned Enterprise Corporate Governance for Emerging Markets. Washington, DC: World Bank Group.
(2021). SOE Reforms; the Impetus for Post-Pandemic Economic Revival. Colombo: The Ceylon Chamber of Commerce.
World Bank. (2022). SRI LANKA DEVELOPMENT UPDATE: PROTECTING THE POOR AND VULNERABLE IN CRISIS. Washington, DC: World Bank.
Наиболее читаемые статьи этого автора (авторов)