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| Sunday, 11 July 2004 |
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New approach to privatisation by Hiran H.Senewiratne The government will not pursue the privatisation policy of public sector enterprises for the sake of privatisation, Secretary to the Treasury Dr P.B. jayasundera said. He said that the Cabinet has given its approval to establish Strategic Management Enterprise Agency (SMEA) to manage, run and improve the commercial viability of public organisations. He reiterated that important public organisations would not be privatised and these included banks and electricity without approval of the SMEA. Taking the new Indian government's privatisation policy as an example the Treasury Secretary said that some valued public sector entities will not be privatised but will remain under government purview for the public good. Dr Jayasundera added that SMEA will support, advise and co- ordinate with all public enterprises with the participation of professionals. Meanwhile,as a solution to the ever- increasing oil prices in the international market, the government has made requests to the main oil suppliers in Saudi Arabia, Iran and even India to sell oil on a long term credit basis to Sri Lanka, he said. He said that the government buys oil by paying a spot cash basis, which has a direct impact on the country's cost of living index. He said that this inspired the government to make this move to negotiate with main suppliers to come to an agreement to sell oil on long- term credit to Sri Lanka. Dr Jayasundera also said that these plans are still in the early stage and nothing concrete on decisions. However, the government will liberalise all import restriction on flour, since it is an essential item, to maintain stable price in the country. Prima issue will be solved once the Treasury obtains Cabinet approval to pay the subsidy. The government pays out nearly Rs 150 million as subsidy for the Prima flour company on a monthly basis. "Due to the delays of formal Cabinet procedures, we were unable to pay the subsidy on time," the Secretary said. He said that at present there was an outstanding subsidy bill pending and waiting for Cabinet approval to release that money. The government has made a request to Prima not to jack up prices and had been asked to show the lowest cost pricing of flour to the market, he added. |
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