IMF's Stern Message : Mismanaged SOEs Could Drain Taxpayer Money!

by Zulfick Farzan 28-03-2025 | 10:05 AM

COLOMBO (News 1st); The International Monetary Fund has stressed that it is crucial that Sri Lanka's State-Owned Enterprises or SOEs are managed in a prudent manner to avoid the accumulation of losses or debts that would eventually need to be paid by taxpayers.

An IMF Spokesperson responding to a question posed by News 1st's Zulfick Farzan pointed out that Sri Lankan authorities have emphasized their commitment to ensure that these enterprises do not become a burden for the budget or government debt.

The spokesperson went on to note that in order to allow the economy grow at its potential it is important to ensure that the consumers of services provided by SOEs receive the best value for the price they are being charged.

The spokesperson added that it involves running SOEs in the most efficient manner and ensuring that they are free of corruption.

Commitments under the current Extended Fund Facility (EFF) program also include making SOEs more transparent, in particular by publishing audited financial statements of the 52 largest SOEs in a timely manner, said the spokesperson.

On Thursday (27), Sri Lanka's Central Bank Governor advocated for Capital Market expansion to boost the country's economic growth.

Dr. P. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka (CBSL), speaking at the Invest Sri Lanka Capital Market Forum 2025 in Colombo, emphasized the importance of expanding the capital market to facilitate the growth and development of state-owned enterprises and large corporates.

Dr. Weerasinghe outlined his vision for leveraging public ownership to enhance governance and create diverse investment opportunities for Sri Lankan citizens.

Dr. Weerasinghe highlighted the significant assets owned by the Sri Lankan state, developed over decades with taxpayer money.

He proposed that listing state-owned enterprises on the capital market would not only provide opportunities for public ownership but also bring essential governance measures into these businesses. "Offering public ownership while maintaining a certain amount of state ownership is the right move. This will provide more opportunities and foster market developments," he stated.