Sri Lanka’s new government, led by President Anura Kumara Dissanayake, is taking a different approach to restructuring state-owned enterprises (SOEs) under the ongoing IMF bailout program, according to Labour Minister and Deputy Economic Development Minister Anil Jayantha.
While the previous government moved towards privatization amid trade union protests, the new administration has formed a committee to explore alternative strategies to enhance SOE efficiency without burdening the treasury. The government aims to prevent market failures, avoid oligarchic control, and ensure affordability and quality in public services.
The IMF recently disbursed the fourth tranche of its $3 billion bailout, emphasizing the need for disciplined fiscal management rather than outright privatization. The government has committed to governance improvements, transparency, and cost-recovery pricing mechanisms, particularly in the energy sector, to support long-term economic stability.