New legislation for SOEs

Monday, 31 July 2017 00:20 - - {{hitsCtrl.values.hits}}

Prime Minister Ranil Wickremesinghe on Friday said new legislation was in the offing to make state-owned enterprises (SOEs) more viable.

“We are bringing public commercial enterprise legislation where SOEs will be required to run on a commercial basis and if we have to grant a subsidy for the benefit of the people that must be shown. This will ensure complete transparency and make SOEs competitive,” Wickremesinghe told journalists. He said the Treasury will take measures to gradually reduce the subsidy or grants given to these organisations except for “subsidies decided upon for the benefit of the public.”

The Premier also said the Government was moving towards transparent energy pricing, which has to be done gradually to ensure there is no adverse impact on the cost of living.

In releasing the third tranche of $ 167.2 million in mid-July under the Extended Fund Facility, the IMF said the timely progress in structural reforms, including tax administration and energy pricing, will strengthen the platform for durable fiscal consolidation.