Sri Lanka SOE revenue has surged this year, with the Treasury recording Rs. 227 billion in income from state-owned enterprises. The government says this reflects the productive use of public capital and the growing efficiency of major state institutions despite economic challenges.
Sri Lanka SOE revenue strengthens Treasury with Rs. 227 billion contribution in 2025
Sri Lanka SOE revenue reached Rs. 227 billion in 2025, according to Deputy Minister of Industries and Entrepreneurship Development Chathuranga Abeysinghe. The figure highlights the continued financial strength and national importance of state-owned enterprises (SOEs), which remain key contributors to Sri Lanka’s economy.
Addressing recent media reports about mixed performance among SOEs in the first half of the year, the Deputy Minister stated that the Treasury income reflects wealth generated for the people through efficient public management and market-driven operations. Although overall profits declined slightly compared to 2024, Abeysinghe clarified that the shortfall resulted mainly from non-adjustments to electricity tariffs and the absence of last year’s foreign exchange gains from SriLankan Airlines.
He acknowledged that several SOEs still face operational difficulties due to legacy issues such as mismanagement and corruption but emphasized that restructuring measures are already underway. The government expects these reforms to strengthen Sri Lanka SOE revenue further in the coming years, ensuring sustainable profitability and better governance.
Rejecting claims that state assets should be privatized, Abeysinghe reaffirmed that Sri Lanka’s economic framework promotes a balanced model integrating state, private, and cooperative sectors. He noted that in advanced economies such as China, Singapore, Vietnam, and South Korea, state-owned enterprises continue to play a strategic role in national development, proving that effective state participation can coexist with competitive markets.
The Deputy Minister stressed that the objective of public ownership is not only to generate profit but also to enhance national welfare, create employment, and stabilize essential services. He revealed that Sri Lanka currently manages 52 key state-owned enterprises identified as strategic, designed to strengthen the economy while delivering public benefit rather than draining financial resources.
To support this approach, the government is drafting new legislation aimed at improving corporate governance, limiting political interference, and ensuring that board appointments are made based on merit and professional qualifications. “Our commitment is to eliminate corruption and waste,” Abeysinghe said, dismissing claims that SOEs misuse taxpayer funds.
Highlighting the consistent contribution of public institutions, the Deputy Minister noted that SOEs earned Rs. 427 billion in 2023 and Rs. 538 billion in 2024. He argued that if these enterprises were privatized, profits would concentrate among a few investors while citizens would face higher costs for essential services.
He further clarified that in 2025, major enterprises such as the Ceylon Electricity Board and Ceylon Petroleum Corporation have maintained operational stability without transferring extra costs to the public. Refuting speculation about SriLankan Airlines’ impact on national finances, Abeysinghe explained that the Rs. 20 billion allocated to the airline came directly from SOE profits, not from taxpayer funds.
The government maintains that Sri Lanka SOE revenue represents the outcome of disciplined management and national ownership, reinforcing its long-term goal of strengthening the public sector’s role in economic development and fiscal stability.