Twelve State entities handpicked for a commercial makeover, will be set targets to clean up their act and look for private investment, a top government official said Tuesday.
Mano Tittawella, Senior Presidential Advisor said ailing state enterprises, which includes utilities, ports, airports and banks, will have to get a credit rating and be responsible for their commercial viability.rn
rnOnce their balance sheets are spruced up, the State firms will be allowed to raise capital both locally and internationally to expand their businesses.rn
rnThe thinking behind is that commercial sound business strategies, will encourage lenders to provide them with financial aid on a medium to long-term basis, without asking for government guarantees.rn
rnSo far, Bank of Ceylon and National Savings Bank (NSB) have secured an AA (sri) and AAA (sri) rating respectively.rn
rnBy pushing for credit ratings, the government hopes these state enterprises can borrow at cheaper rates from the market.rn