SOE reforms vital for Sri Lanka economic recovery 

The Advocata Institute held a press briefing titled “Unlocking Economic Potential: Why Debt Restructuring Alone Won’t Suffice Without SOE Reforms” was held at Lavender Hall, BMICH. 

The event brought together key speakers Shihar Aneez (Senior Financial Journalist), Rehana Thowfeek (Research Consultant to Advocata Institute), and Dhananath Fernando (CEO of Advocata Institute) to address the critical need for transparency and reforms in Sri Lanka’s State-Owned Enterprises (SOEs).

The speakers collectively warned that without continued SOE reforms, Sri Lanka risks perpetuating its economic challenges and will likely need to repeatedly return to the International Monetary Fund (IMF).

They urged that the government should not be involved in business operations and highlighted the potential misuse of SOEs for electoral purposes if reforms are delayed due to upcoming elections. “If SOE reforms are not continued, Sri Lanka will have to go back to the IMF repeatedly. Government should not be doing business.”

The CEO of the Advocata Institute, Dhananath Fernando opened the discussion by presenting a detailed analysis of the apparent profits recorded by some SOEs in 2023.

He noted that these profits were primarily due to significant price increases and the absorption of losses by the Government of Sri Lanka (GOSL).