The government has set particular goals for state-owned enterprises (SOEs) to be accomplished by 2020-2021 through the Corporate Intent Statement (SCIs).
10 SOEs entered into SCIs with the Ministry of Finance on Monday in an effort to reinforce their governance, accountability, and transparency under obviously specified medium-term goals.
The SOEs that signed contracts include: 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.
Meanwhile, the State Pharmaceuticals Corporation will have to achieve open market sales revenue growth of 45% by 2021 based on the 2018 sales and ensure on-time delivery of pharmaceuticals by achieving 80% success rate by 2021. The Department of Public Enterprises (PED) introduced the concept of SCI in 2017 with a view to enhancing the performance of SOEs. This concept was approved by the Cabinet of Ministers on February 7, 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 March 15, 2017.
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.