Cabinet approves review of State-Owned Non-Commercial institutions in Sri Lanka

The Cabinet of Ministers in Sri Lanka has granted approval to review state-owned enterprises (SOEs) with non-commercial interests.

This proposal was presented by the President during the Cabinet meeting held yesterday (December 18).

The government is tasked with critical responsibilities such as providing public services, ensuring national security, maintaining law and order, regulating markets, ensuring equitable resource distribution, managing disasters, and overseeing social welfare. To fulfill these responsibilities, the country operates through various administrative and state-owned entities, including:

• 86 Departments
• 25 District Secretariats
• 339 Divisional Secretariats
• 340 State-Owned Enterprises
• 115 Non-Commercial State Statutory Bodies

For 2024, approximately Rs. 140 billion has been allocated in the National Budget for the functioning of these non-commercial institutions. This includes 115 state statutory bodies supervised by the Department of National Budget and 51 institutions overseen by the Department of Public Enterprises.

Need for Review

The review has become necessary due to several challenges faced by these institutions:

• Outdated structures
• Insufficient or incompatible authority
• Inefficiencies caused by overlapping roles
• Functions that could potentially be handled more efficiently by the private sector

Recognizing these challenges, the Cabinet approved the appointment of a committee to review these institutions and provide recommendations for improvement.

Composition of the Committee

The committee will be chaired by the Secretary to the Prime Minister and include the following members:

1. Secretary – Ministry of Education, Higher Education, and Vocational Education
2. Secretary – Ministry of Agriculture and Livestock, Lands, and Irrigation
3. Secretary – Ministry of Industries and Entrepreneurship Development
4. Secretary – Ministry of Plantations and Community Infrastructure
5. A Deputy Treasury Secretary nominated by the Secretary to the Treasury
6. An Additional Secretary to the Ministry, nominated by the Secretary to the Ministry of Public Administration, Provincial Councils, and Local Government
7. Director General – National Budget
8. Director General – Department of Management
9. Director General – Department of Public Enterprises
10. Chairman – University Grants Commission

This official committee is tasked with conducting a comprehensive review and submitting a report with actionable recommendations.