Sri Lankan state enterprises open for private sector investments - state minister

State Minister for Urban Development and Housing, Arundika Fernando, announced that state enterprises are now open to private sector investments, but only at the government’s assessed value. 

This directive aligns with President Ranil Wickremesinghe’s instruction that state enterprises should not be offered for private sector investments below their assessed value.

State Minister Fernando highlighted the revival of regional development projects that were previously halted due to economic difficulties. 

He made these remarks at a press briefing held at the Presidential Media Centre today (22), under the theme ‘Collective Path to a Stable Country.’

Expressing his views further he said”

“The government has granted authorization to seek investors for various enterprises falling under the purview of the Ministry of Urban Development and Housing, with the aim of ensuring their systematic maintenance.

This move is anticipated to facilitate transparent investment procedures for establishments like the Hilton Hotel, ultimately strengthening the financial reserves of the government, distributing shares among employees, and fostering orderly management of these entities.

It is expected to exceed the government’s assessed value through these investments. President Ranil Wickremesinghe has directed not to offer state enterprises in private sector investments below their assessed value. Accordingly, there is no room for any private investor to acquire state enterprises below the government’s appraisal value.

Additionally, Sri Lankan Airlines is burdened with a substantial debt. Even if the government shoulders a portion of it, any investor interested in the airline must possess the financial strength to manage the remaining debt.

Furthermore, valuable government land has been allocated for projects such as the Colombo Hyatt Hotel, Chris, and Destiny. Regrettably, the investors involved in these ventures have left them. Presently, the Krrish project stands as a lingering environmental issue, characterized by a derelict building.

Moreover, USD 60 million has been allocated to the Colombo Hyatt Hotel project, primarily sourced from public funds. Additionally, there remains a debt of USD 35 million associated with this project. The development has utilized a significant plot of land in Colombo. If an appropriate investor does not emerge, we are prepared to proceed with completion with the assistance of the armed forces, with financing from the treasury.

In addition, we are optimistic about a significant increase in foreign investment into the country in the coming months.

In a remarkable turnaround from recent economic challenges, the country has experienced a surge in foreign reserves. The funds have been allocated to resume stalled regional development projects. Under the President’s economic agenda, funding for the Aswasuma Social Welfare Benefit Program has tripled compared to “Samurdhi”. 

Additionally, the Urumaya program, designed to provide free land deeds for licensed lands, has been swiftly implemented, empowering communities. These bold initiatives highlight the government’s proactive approach in driving the country towards prosperity.”

--PMD