Eran says Government follows a “pragmatic approach” in restructuring State enterprises

Deputy Minister of Public Enterprise Development Eran Wickramaratne told Parliament last Friday that the Government follows a pragmatic approach to restructure State enterprises. 

A fiery Wickramaratne claimed that the Government is not outdate in their economic and political approach to restructuring, and has a practical approach. 

“It is not dogmatism but it is pragmatism that drives our programs. We don’t believe that change in ownership will bring benefits; the situation in Africa, India, Singapore and South America proves this. We don’t follow a single model; we go for productive agreements or management agreements to compete with the private sector or for Private Public Partnerships,” he claimed during committee stage debate on the Appropriation Bill for the Ministry of Public Enterprise Development. Refuting accusations levelled against the Government by JVP MP Sunil Handunnetti, he denied any attempts by the Government to cover up any misappropriations that may have occurred in the State-owned enterprises. He highlighted that most misappropriations happened during the previous regime. 

“So there is no attempt to cover up,” he said, adding that it was the duty of the Government to ensure that tax money should be used to provide services, not engage in loss making businesses. 

Speaking of the country’s ailing airlines, he said a country with economic conditions such as Sri Lanka, with limited capital, cannot manage two air lines, and that Sri Lankan Airlines has taken over all the air routes of Mihin Lanka.

“These were not easy decisions to make but we are compelled to take such decisions. So Sri Lankan Airlines has stopped all the loss-making routes and they have focused on becoming a more regional airline. We have verified that the Sri Lankan Management has taken the right decision by getting independent evaluations from international consultancy firms,” the minister said. 

“We observed that Sri Lankan can make profits as a regional and have cancelled European flights. This is why Sri Lankan Airlines became the first international airline to fly to Gan Island in Maldives.” 

He said that management has also taken steps to cancel the order to buy the A350-900 aircrafts which were ordered by the previous regime, highlighting that the process of selecting an investor in SriLankan Airlines is being carried out transparently. 

“We have announced that we are looking for investments to fulfil capital, technological and management requirements of Sri Lankan airlines. We have received eight EOIs and have shortlisted three. We will be able announce our selection early next year,” he claimed. 

The Minister also highlighted that banks must focus on the core businesses, adding that banks will have to start thinking about how they will fulfil the capital shortfall. Speaking on State banks, Wickramaratne said the country does not need more than one housing bank to deliver the desired services. 

“We are utilising the entire bank network to launch the 500,000 houses programme, we are devising a proper system for that along with plans to give loans at low interest rates. The RDB will also be strengthened,” he said.