SEMA to rejuvenate key state enterprises
[June 15, 2004 - 8.30 GMT] 

The Strategic Enterprises Management Agency (SEMA) established by President Kumaratunga last week, is to revive several key public sector enterprises. This is aimed at improving their efficiency, service delivery, financial independence and accountability.

Initially 12 strategic enterprises have been identified. They are the Bank of Ceylon (BOC), People's Bank (PB), National Savings Bank (NSB), State Mortgage and Investment Bank (SMIB), Ceylon Electricity Board (CEB), Ceylon Petroleum Corporation (CPC), Sri Lanka Ports Authority (SLPA), Airports and Aviation Authority (AAA), Ceylon Government Railway (CGR), Ceylon Transport Board (CTB) and Regional Cluster Bus Companies, National Water Supply and Drainage Board (NWSDB) and State Pharmaceutical Corporation (SPC).

"SEMA and its objectives are a conscious policy decision by the Government and implementation of an assurance given in the UPFA manifesto," Chairman and Chief Executive Officer of SEMA, Mr. Tittawella told a press briefing at the President's House yesterday.

According to Mano Tittawella leading donor agencies such as the World Bank, the International Monetary Fund and the Asian Development Bank have extended their support to make SEMA a reality. 

The Government belief is that privatization is not the sole answer to improve efficiency and financial viability of strategic state enterprises. These enterprises should be managed as independent commercial bodies with commercial autonomy, instead of privatizing them, explained Tittawella.

The introduction of professional management, improved commercial viability and consequential benefits to the national budget will enable the Government to better address the social agenda in an effective manner. 

Tittawella said that administratively the selected enterprises would continue to be under the purview of ministries as already gazetted, "However the Ministries will not get involved in day-to-day administration and business operations of the enterprises, instead concentrate on policy formulation and development in relation to the overall area coming under their purview," he said.

SEMA will also be required to ensure that each of the strategic enterprises will produce a 3-5 year business plan for itself and implemented in a timely manner. The business plan will include appropriate strategies pertaining to procurement, human resource planning, technology use and such other aspects relevant to commercial operations.

PRINT THIS STORY

Contact Information: Send mail to gosl@presidentsl.org with questions or comments about this web site. 
Last Updated Date: June 15, 2004  - 8.30 GMT.