The Cabinet has granted approval for the establishment of a parent company affiliated with the Treasury to initiate the program for restructuring State-Owned Enterprises.
The government said the resolution for the restructuring of state enterprises was presented to the Parliament by President Ranil Wickremesinghe in the interim budget of 2022 as well as in the budget presented for the year 2023.
Accordingly, the State Enterprises Restructuring Unit has already been established under the Ministry of Finance, Economic Stabilization and National Policies to facilitate the restructuring process of State Enterprises.
Some of the entities targeted for restructuring are state-owned companies of which the government is the majority shareholder. Some state-owned enterprises operate as corporations.
Under that situation, the Cabinet of Ministers has approved a proposal to make necessary arrangements to establish a parent company affiliated with the Treasury with 100% equity ownership by the Secretary of the Treasury.
The proposal also recommends making necessary arrangements to register the State Enterprises identified for restructuring as subsidiaries of the said parent company in order to accelerate the state-owned enterprises’ restructuring program.
The proposal was presented by the President in his capacity as the Minister of Finance, Economic Stability and National Policies. (NewsWire)