Sri Lanka chamber calls on political parties to support SOE reforms

Sri Lanka
By Editor_1

COLOMBO – The Ceylon Chamber of Commerce (CCC) has urged all political parties to support the continuity of State-Owned Enterprises (SOEs) reform and maintain momentum, building on the economic stability achieved.

“The Chamber stresses that it is vital to prioritize and implement the reforms related to State-Owned Enterprises (SOEs), energy, and fiscal management, to ensure that the country does not revert to a crisis,” the CCC said in a statement, adding that it is crucial that all political parties focus on Sri Lanka’s long-term sustainability and avoid leveraging the reform process for short term election gains.

Sri Lanka is facing a presidential election before November this year and a general election later. Provincial Council elections are overdue.

The World Bank has expressed concerns that reform fatigue could set in, leading to potential policy reversal, particularly about state-owned enterprises.

The CCC said earlier that SOE reforms will enhance the government’s fiscal outlook through better performance, productivity and accountability. “Historically, inefficiencies and a lack of accountability in SOEs have led to significant financial burdens on the government, contributing to economic crises and the misallocation of resources,” it said.

The Chamber highlighted the importance of implementing market-based pricing and enhancing accountability within SOEs to prevent corruption and inefficiency.

“Effective reforms will ensure these enterprises are sustainable and competitive in the long run, reducing the risk of future economic turbulence,” it added.

-economynext.com

Editor_1
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