Politics · Sri Lanka Bureau
Government launches liquidation process for 33 underperforming state enterprises
Sri Lanka's Ministry of Finance has announced the formal liquidation of 33 struggling state-owned enterprises as part of a broader restructuring initiative. A dedicated reform unit established in March will oversee the overhaul of the country's underperforming public sector entities.
LSN Sri Lanka ·
The Ministry of Finance, Planning and Economic Development has confirmed that liquidation proceedings have commenced for 33 selected State-Owned Enterprises (SOEs) identified as non-viable or chronically underperforming.
The initiative follows the establishment of a specialised State-Owned Enterprise Reform Unit within the Ministry in March, approved by Cabinet. The dedicated unit has been mandated to oversee the comprehensive restructuring and rationalisation of the country's sprawling state enterprise sector, addressing long-standing concerns about fiscal drain and operational inefficiency.
The reform programme represents part of the government's broader effort to stabilise the country's public finances and improve the performance of remaining state entities. Officials have indicated that the restructuring process will be managed systematically to minimise disruption while addressing the financial pressures posed by non-performing enterprises.
The 33 enterprises targeted for liquidation have been selected based on assessments of their operational viability and financial sustainability. The government has not yet released details on timelines for the liquidation process or potential impacts on affected employees and stakeholders.