The Advocata Institute is praising the President’s directive to shut down the loss-making State Owned Enterprise (SOE) Salusala.
Issuing a press release yesterday (18), Advocata said that Salusala, which is now a ‘white elephant’ to the society, was once the only state textile trading enterprise in the country.
“While we commend this decision, we are also anticipating the official gazette enacting this statement. In 2011, the First Committee of Public Enterprises Report (COPE) revealed that for the year 2009/2010, Lanka Salusala Ltd. has made a loss of Rs. 30 million. However, Advocata has been unable to track the financials of Lanka Salusala thereafter as there has been no Annual Reports or Performance Reports published and available to the public,” the statement said.
Advocata further said that Salusala is not the only SOE which is a fiscal strain on the country’s economy and the Government has failed to monitor financials for many other SOEs.
“Out of 527 SOEs identified by Advocata’s 2018 State of State Enterprises report, only 54 are classified as being ‘strategic’ by the government. Non-Strategic SOEs like Sri Lankan Airlines, Lanka Sathosa and Agriculture and Agrarian Insurance Corporation are in need of immediate reform,” it added.
Advocata Institute is, therefore, urging the government to exit all enterprises of this nature and release the valuable resources they occupy into more productive sectors of the economy.