Lankapage Logo CP 19 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka Government signs Statement of Corporate Intent with 10 SOEs
Mon, Jun 10, 2019, 11:20 pm SL Time, ColomboPage News Desk, Sri Lanka.

June 10, Colombo: The Government Monday signed the Statement of Corporate Intent (SCIs) with ten selected State Owned Enterprises (SOEs) with a view to enhance the performance of these institutions.

The agreements were signed on 10th June at the "Randora" Auditorium of the Ministry of Finance.

The Department of Public Enterprises (PED) introduced the concept of SCI in 2017 with a view to enhance the performance of SOEs.

This concept was approved by the Cabinet of Ministers on 7th February 2017 and was initiated by signing SCIs with five Key SOEs; Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB), Sri Lanka Ports Authority (SLPA), Airport and Aviation Services (Sri Lanka) Limited (AASL) and National Water Supply and Drainage Board (NWS&DB) on 15th March 2017.

Subsequently, followed by the approval of the Cabinet of Ministers, it was planned to sign SCIs with another 10 selected SOEs - Sri Lanka State Plantation Corporation, Urban Development Authority, Lanka Sathosa (Pvt) Ltd, Central Engineering Consultancy Bureau, State Timber Corporation, Kurunegala Plantation (Pvt) Ltd, State Pharmaceuticals Corporation, Milco (Pvt) Ltd, National Livestock Development Board and Geological Survey and Mines Bureau.

SCI is a tripartite Agreement, signed among the Secretary to the Ministry of Finance (MOF), Secretary of relevant line Ministry and the Chairman of the respective SOE on behalf of the Board of Directors with the mission of creating a platform for SOEs to operate in a commercially viable manner in order to achieve macroeconomic objectives of the country.

SCI possesses following objectives; to operate SOEs in a budgetary independent and commercially viable manner, to improve Corporate Governance Practices, to strengthen the Financial Management, to strengthen the Human resource management, to change the operational culture and reengineering the business process, to improve the transparency and accountability in operations, to ensure efficient and effective business operations and to generate reasonable Return on Investment.

Moreover, SCI contains key performance indicators linked to Corporate Plan, Action Plan and Annual Budget of the SOEs spread over three years' time horizon. In addition, the impact of all noncommercial operations of the SOEs are also taken into account and included in the SCI.

The SCI would enable to contribute positively to the strategically important SOEs towards achieving Sri Lanka's economic goals by enhancing the contribution making to the GDP of the country.

In achieving the set objectives of these SOEs, the key expectations of the government are to encourage and to facilitate these SOEs to improve the operational and financial efficiency through improved corporate practices, innovative financing, strong and prudent financial management, exposure to competitiveness and international best-practices and effective human resource management while enhancing public accountability.

The effectiveness of the SCI process will depend fundamentally on to what extent the SCI will be used as their own management tool by the selected SOEs and the Line Ministries. Progress of SCIs are monitored by PED and the PED submits a progress report to the Cabinet of Ministers periodically.

On the success of the implementation of this program, the government is expecting to extend this move for the other 400 SOEs as well by time to time, the Ministry of Finance said.

 

ColomboPage - Recent 10 Stories ::
'Opposition's blessing for special PSC for National Religious Reconciliation is a victory for the future generation' - Speaker
-- [37 minutes ago]
Sri Lanka takes center stage at the Amsteluxe Luxury Travel Show in Amsterdam
-- [1 hour and 41 minutes ago]
Sri Lanka's first satellite 'Raavana 1' launched into orbit
-- [2 hours ago]
STF arrests 51 with drugs at Facebook party in Balangoda
-- [9 hours ago]
Mihintale SLPP Local council member arrested for assaulting six people
-- [9 hours ago]
National program of establishing 5000 Export Zone Villages to begin today
-- [9 hours ago]
Sri Lanka urges to place nuclear terrorism high on global agenda at GICNT
Sri Lanka EDB organizes Technical exposure and capacity building program for food & beverage entrepreneurs in Thailand
Sri Lanka sees manufacturing activities recover in May 2019, services sector continues to deteriorate
No plans to halt Battle of Solar Power project - Ministry

Copyright © 2000, 2016 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.