Sri Lanka:Seven state-owned enterprises to be divested

Sri Lanka has decided to divest its stake in seven state-owned enterprises. Sri Lanka President Ranil Wickremesinghe said the state has no business engaging in business and cited India’s example of divesting from Public Sector Undertakings. He said that the crisis-hit island nation is trying to embark on a path of recovery and rapid development, and Sri Lanka must follow India’s example, he added and said Sri Lanka has been spending more on the state-run Ceylon Electricity Board and the Ceylon Petroleum Corporation than on education. The Cabinet of Ministers has approved, in principle, the divestiture of the following State-Owned Enterprises:

1. SriLankan Airlines and SriLankan Catering

2. Sri Lanka Telecom PLC

3. Sri Lanka Insurance Corporation Limited

4. Canwill Holdings (Pvt) Ltd - Grand Hyatt Colombo

5. Hotel Developers (Lanka) Ltd - Hilton Hotel Colombo

6. Litro Gas Terminal Lanka (Pvt) Ltd & Litro Gas Lanka Ltd

7. Lanka Hospitals PLC

The government will appoint reputed, qualified and experienced consultancy firms and development financial institutions to provide transaction advisory services to assist with the divestitures.