Parliament Speeches

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Delivering the keynote address during the inauguration of a Master of Science Degree program bythe Faculty of Graduate Studies at the Ratmalana General Sri John Kotelawala Defense University (KDU) for the academic year 2016,on 18 March, Deputy Minister of State Enterprise Development Eran Wickramaratne stressed that in orderforpublic enterprises to be more profitable, competition needs to be introduced to the sector through public private partnership.

Deputy Minister Wickramaratne made this observation while pointing out the recent failures of some public enterprises to provide continued service to the people.

“We have had three blackouts since September 2015. It was a single event that caused in system failure. It is unacceptable to have any kind of blackout in the modern world that we live in. Competition has to be the principal and the driving force in these kinds of spaces, whether it be within public enterprises or across the public enterprise or between the public enterprise and the private sector. The process of competition has to be subject to effective sector specific regulations,”Wickamarathne charged.

Daily Mirror 16 02 09

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But there are some areas where the state need not be involved, and doing so only takes away income generating opportunities from a number of segments such as private businesses, home businesses and others. If the government gets involved, it becomes unfair competition, and that is what has been taking place. There is a crowding out effect.

 

 

State-owned enterprises (SOEs) have come under harsh criticism in the recent past for their poor performance, productivity and profitability, and it is the public that paid the price.

With the change of government, and the appointments of fresh leaders, it is hoped the troubled entities would rectify their dismal performances and stop enlarging the hole in taxpayer’s pocket.

In an attempt to get a clear picture as to what the fate of these institutions will be, Mirror Business sat down with State Enterprise Development Deputy Minister Eran Wickramaratne— a former banker and a highly respected figure in the private sector— this week for a comprehensive interview on what path the ministry would take to accomplish the strenuous task.

 

Following are the excerpts of the interview.

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