SLT Chief calls on Govt. to avoid desperate moves suggested by economic pundits’

• Outlines four principles; zero corruption, waste, high efficiency, inclusiveness to transform SOEs
• Says asset-rich SOEs can be turned around as lucrative firms with business sans politics in management
• Claims economic pundits preaching from textbooks to sell assets unaware of reality of biz operations
• Affirms SLT is ready to assist Govt. to formulate strategies to restructure troubled SOEs
• Believes real system change people hope for reviving troubled SOEs with cooperation of employees 
• Asserts crisis holds opportunities for much-needed reforms and transformation in Sri Lanka

By Charumini de Silva

SLT-Mobitel Chairman Rohan Fernando this week outlined four key fundamental principles to turnaround the debt-ridden State-owned enterprises into profitable entities, whilst calling on the Government to avoid desperate moves suggested by economic pundits.

“Zero corruption, maximise efficiency, minimise waste and inclusiveness in management are the four principles which we adopted to be labelled as the cash cow for the Government,” he told the CMA National Management Accounting Conference 2022 in a session titled ‘State-Owned Enterprises — Are They Well Managed or Mismanaged’ on Tuesday.

He firmly believes if brought under the clean management of experienced corporate executives with absolutely no political interference, these asset-rich SOEs can transform into profitable institutions attracting credible investors like SLT-Mobitel.

Presenting SLT, as the biggest success story and benchmark model for policymakers to transform and develop SOEs into successful organisations under a public-private partnership (PPP), Fernando asserted that being a State-run firm it helped to lay a robust technological foundation and be the digital leader for Sri Lanka.

“Our company continues to make revenue for the country without being a burden to the State or the citizens of the nation. In 2021 alone, we contributed Rs. 19.3 billion through direct and indirect taxes. Our shareholders including the Government Treasury reaped rich dividends of Rs. 3.5 billion,” he added.

Fernando also affirmed that SLT is ready to assist the Government in formulating strategies to restructure troubled SOEs with the involvement and cooperation of employees. “This, I believe, is the real system change the people of Sri Lanka hope for and the International Monetary Fund and World Bank suggest,” he opined.

Although the selling of assets may look the easiest, as the economic pundits, some of whom have never run a business, preach from textbooks and believe in their buzz term ‘picking the low-hanging fruit’ Fernando insisted the Government must explore business sans politics in management.

“Our country faces key issues in several sectors and privatising SOEs that are running losses of up to billions of dollars are a key topic of conversation among the Government, economists, think tanks and donors looking to reform the country’s economy. But as a resilient nation and as hard as it may be to accept, this national crisis does hold opportunities for much-needed reforms and transformation in Sri Lanka,” he pointed out.

Noting that politics can enormously impact businesses the world over and especially in the region, Fernando stressed that the SLT has led the way in showcasing how corporates and institutions can thrive with the least political influence.

“With our countrywide vast network and the ownership in land and buildings, asset monetisation with investors has already begun to improve the wealth and the business turnover of the group as opposed to asset stripping in desperation,” he added.

Fernando recalled that even with political interference the 160-year-old institution did not stagnate but operated as a profitable listed conglomerate, primarily due to its enormous asset base and the experienced staff who continued to defy the odds and protected the company.