Sri Lanka’s ongoing struggle to revamp its State-Owned Enterprises (SOEs) presents a crucial opportunity to learn from regional peers. As the nation embarks on a new round of reform attempts, a balanced approach that prioritizes both economic efficiency and security considerations is paramount.
The cyclical nature of SOE reform efforts in Sri Lanka, historically driven by economic crises, has been highlighted by experts like Rohan Shah. However, the current attempt faces a unique challenge – navigating concerns surrounding national security, particularly in the telecommunications sector.
Shah, speaking at a forum organized by the Institute of Engineers, emphasized that national security is a valid concern when considering divestment of SOEs like Sri Lanka Telecom. However, he challenged the notion that divestment inherently compromises security. He pointed to Sri Lanka’s own experience during its civil war, when foreign management of Sri Lanka Telecom existed without compromising national security.
Drawing parallels with regional success stories, Shah presented a blueprint for Sri Lanka. Countries like Singapore and Malaysia have successfully attracted foreign investment and expertise into their SOEs while maintaining national security. Their approach relies on strategic partnerships and robust regulatory frameworks. These frameworks ensure efficient private sector management while safeguarding national interests and preventing economic stagnation.
Stringent regulations and oversight mechanisms, as advocated by Shah, can mitigate the risks associated with divestment, particularly concerns surrounding foreign control of critical infrastructure. The key lies in a balanced approach that prioritizes both economic efficiency and national security. By learning from regional powerhouses who have leveraged foreign expertise while maintaining tight control over security aspects, Sri Lanka can navigate these complex waters.
The success stories of regional peers offer a roadmap for Sri Lanka. With a well-crafted mix of policies, robust oversight, and strategic international cooperation, it is possible to achieve the seemingly conflicting goals of economic efficiency and national security. This balanced approach holds the key to unlocking a brighter future for Sri Lanka’s SOEs.