Former President Rajapaksa calls for postponing sale of national assets

Highlighting the importance of transparency and national security in any restructuring process, he stressed the need for maximum consultation with employees and adherence to a national plan.

Issuing a statement addressing the growing concerns over the government’s plans to sell off national assets and state-owned enterprises (SOEs), former President Mahinda Rajapaksa has states that these actions of the government have given rise to discontent among trade unions, political parties and the general public.

He emphasized his administration’s stance of not selling a single state-owned enterprise during his tenure as President. He pointed out that instead of privatization, his government focused on re-acquiring some previously sold enterprises, such as the Insurance Corporation and Lanka Hospitals, which continue to yield profits for the state.

“My government had a pragmatic approach towards state owned assets and enterprises. If a state-owned enterprise was making profits and providing a good service to the public, we saw no reason to privatize it.

At times, a government may take a strategic decision to manage the prices of certain goods or services produced by state-owned enterprises for the overall benefit of the economy or to help low-income earners…There is no government in the world that does not subsidise certain earmarked economic activities,” Rajapaksa stated.

Highlighting the importance of transparency and national security in any restructuring process, he stressed the need for maximum consultation with employees and adherence to a national plan.

However, Rajapaksa also stressed that trade unions adopt a nuanced approach, recognizing that not all private sector involvement in state-owned enterprises should be opposed. He emphasized the potential benefits of private sector participation in revitalizing underperforming enterprises or investing in new projects.

“Going by the dictionary definition of privatization, any involvement of the private sector in the ownership structure or the control of a state-owned asset or enterprise can be characterized as privatization. However, trade unions should not oppose every attempt to obtain foreign or private sector investment in a government-owned enterprise. A pragmatic and non-dogmatic approach to such matters is required”, the statement mentioned.