The government has set up an agency to independently manage commercial enterprises rather than privatize them as critics slammed it saying across the board state capitalism might not be the best answer to address the differing needs of state institutions.
Twelve strategically important institutions including state owned banks, utility and transport sector investments have been brought under the Strategic Enterprise Management Agency (SEMA) set up under a special presidential directive.rn
rnThe government, which doesnt want to privatize any of these institutions, says some need urgent capital injections.rn
rnState commercial banks that dont meet minimum capital guidelines set by the Central Bank are heading the list of government businesses looking for capital.rn
rnOver Rs. 12 billion are needed to plug a hole in the Peoples Bank balance sheet created by years of mismanagement and a mountain of dud loans.rn
rnA former chairman of Peoples Bank who now heads SEMA, Mano Tittewala says they are expl