Sri vista enterprises

Rm , Tower 1, No , Wuhua Rd. Liu lqb titanos. Evelyn fdt titanos. B, 4 FL. Mr Leon Hsiao. Raya Bekasi Km. MAlfonso scottchem. Shop No. Market, Opp. Diamond Prestige Suite No. Bose Road, Kolkata — India. Mundhra rrm plastipack. Bldge No 7, 4th Floor, Unit No. KPK Easwaran. Milan Vasant shah. New No. Chettipalayam Village,SF. Ali Nasouh Al-Taher St. De Mexico, Mexico City, Mexico. Paseo de las Naciones 30, Col. Ehuth-helriegel brenntag. Remex Corporation Ltd.

Chemanex PLC, No. Autopista Medellin Km 3. Av Separadora Industrial , Urb. Industrial El Artesano - Ate Peru.

RUT - H M Thombare regulatory sudarshan. Production Mahad Plot No. Sudarshan Europe BV. Sudarshan North America Inc. Sudarshan Brazil Alameda Santos, no. Europe inc. Brasil Sudarshan Brazil Alameda Santos, no. Australia Scott Chemicals Australia Pty. Top Shine Asia Pacific Ltd. Excellen Chemicals Shanghai Co. LTD NO. Some recently established SOEs have found a new way of bypassing budgets and oversight: by incorporating as companies rather than through an act of Parliament, they are excluded from Parliamentary accountability and allowed to rack up unsustainable debts and surpass budgets more easily.

Finally, while some SOEs do manage to make a profit this is, more often than not, due to the advantage that these companies have in an uneven playing field. In addition to lax budgetary requirements and ability to rack up unsustainable debts, these companies are supported by the government through direct subsidies and state-backed guarantees; by regulators through exemptions from antitrust policies and preferential treatment; and by the justice system through an ability to sidestep parliament.

This has led to private sector organizations being crowded out of the industries that SOEs operate in. Given that the nation has reached an economic tipping point, with serious questions about debt sustainability and government solvency, it is clear that immediate action must be taken.

Advocata proposes a short term policy solution consisting of privatization, restructuring and disinvestment, and listing on the Colombo Stock Exchange.

None of these solutions are particularly radical in the global or local context. Listing on the CSE would allow these firms to have broad-based direct ownership, while also improving the growth of the CSE and capital markets. There are, unfortunately, firms that will essentially have to be given away due to their huge debts and poor reputations.

A prime example of this is SriLankan Airlines, which has racked up Rs. While some will regard this as a blow to our national pride, Sri Lanka would not be alone in taking such a pragmatic step to improve government finances and customer experience; Air India, the Indian national carrier, is currently in the process of being sold to the Tata Group for the relatively small sum of INR 18, crore.

This applies particularly to firms like the Ceylon Electricity Board which, as a natural monopoly, cannot be broken up and privatized without losing efficiency. Despite the 15 years and multiple nationwide blackouts that have occurred since, GoSL continues to drag their feet on the issue, as it is politically unpopular.

Cost-reflective pricing also prevented due to political unpopularity is another essential reform. The existing system of having electricity tariffs priced below cost is a public subsidy whose cost will be borne by future generations. It is also inequitable, as the government could provide low cost services to those who need it by giving them direct cash transfers, instead of subsidizing the wealthy who can afford to pay.

A similar situation is evident with the Ceylon Petroleum Corporation, which currently makes a loss of Rs per litre of fuel [9] ; again, a public subsidy to those who can often afford to pay the market price. A successful and thriving market, in most industries, will only occur with the presence of three crucial factors: competition, a good framework, and competent regulation.

Migara Rodrigo is a Researcher at the Advocata Institute. He can be contacted at migara. They may not necessarily reflect the views of the Advocata Institute.