Business · Sri Lanka Bureau
Sri Lanka should adopt Uzbekistan's state enterprise reform model: expert
A fund manager has recommended that Sri Lanka study Uzbekistan's approach to reforming state-owned enterprises as a potential roadmap for improving the island's struggling SOE sector.
LSN Sri Lanka ·
Sri Lanka's persistent challenges with state-owned enterprise performance could be addressed by adopting reform strategies successfully implemented in Uzbekistan, according to financial sector commentary.
The Central Asian nation's model for restructuring SOEs offers valuable lessons for policymakers seeking to enhance operational efficiency and reduce fiscal burdens from underperforming public entities. Uzbekistan's approach has focused on modernizing management practices, improving corporate governance, and introducing performance accountability measures across its state enterprise portfolio.
The recommendation comes as Sri Lanka continues grappling with losses and inefficiencies within its SOE sector, which has become an increasing drain on government finances. Many state enterprises operate with outdated systems and weak accountability frameworks that impede their commercial viability.
Experts suggest that adopting elements of the Uzbekistan model could help Sri Lanka establish clearer performance metrics, strengthen board independence, and implement market-oriented operational standards within state enterprises. Such reforms could potentially generate additional revenue streams for the government while reducing ongoing subsidy requirements.
The proposal adds to ongoing debate among policymakers and development partners regarding comprehensive SOE reform strategies necessary to improve Sri Lanka's fiscal sustainability and economic competitiveness.