Home

News

Politics

Issues

Focus

Editorial

Spotlight

Insight

Sports

Business

Review

Arts

Letters

Nutshell

Interviews

Fashion

Archives

Privatisation dilemma

By Mandana Ismail Abeywickrema

With a fierce battle brewing between Finance Minister Dr. Sarath Amunugama and Treasury Secretary P. B. Jayasundara over the issue of privatisation with both stating diametrically opposite views on the matter, the UPFA cabinet remains still undecided whether or not to continue with the proposed privatisation of several state institutions.

Minister Amunugama was reported to have openly said that the government would privatise the remaining shares of Sri Lanka Telecom (SLT) and SriLankan Airlines as planned before.

In an interview with an international business news agency - Bloomberg - Dr. Amunugama reportedly said: "Sri Lanka may sell stakes in Sri Lanka Telecom Ltd., SriLankan Airlines and other companies to pare a budget deficit that threatens economic growth."

The report further states that the pre-election pledges to hire more civil servants and spend more on agriculture may make that task difficult, as could the Marxist-oriented Janatha Vimukthi Peramuna (JVP) an alliance partner, which opposes the sale of assets.

According to Cabinet Spokesman and Media Minister Reginald Cooray, cabinet has not made a specific decision with regard to the privatisation of SLT and SriLankan Airlines.

When queried, Cooray maintained that the United People's Freedom Alliance (UPFA) manifesto sets out the guidelines under which they would function with regard to privatisation and other economic reforms.

Speaking to The Sunday Leader, Treasury Secretary, Dr. P. B. Jayasundara said that the UPFA government would go ahead with the privatisation of institutions set in motion by the previous UNF regime.

Dr. Jayasundara added that according to his knowledge the government has not reached a decision with regard to both ventures. He also added that the government would not be in a position to privatise SriLankan Airlines as it would be illegal to do so.

The UPFA manifesto under the heading of 'new economic order for a strong national economy' states: "Stop privatisation of national resources and public institutions and make them to play an important role in the regeneration of the national economy."  

However Finance minister maintained that the government is not for privatisation but committed to improving the management of state ventures especially those needing strategic alliance with the private sector. He said SriLankan airlines and telecom are such examples.

  Headlines