Sri Lanka wants holding company structure for public enterprises: Governor

Sept 29, 2015 (LBO) – Sri Lanka’s government is looking at setting up a holding company which will own equity stakes in public enterprises, the central bank governor said.

The aim here is to improve good governance and restructure under-performing ones, he said.

“The government wants to evolve a holding company which will own equity in all the public enterprises and then look at the restructuring etc,” Arjuna Mahendran told media.

“So this holding company will bring about principles of corporate governance and restructure any of these public enterprises which are not performing adequately,” he added.

These enterprises would come under the Ministry of Public Enterprises.  Banks, which are commercial entities, also come under the Ministry of Public Enterprises.

Explaining some of the recent ministerial changes, Mahendran said the Monetary Law Act has been placed under Ministry of National Policy and Economic Affairs which was the Ministry of Policy Planning and Economic Affairs under the previous government.

“The thinking of the Prime Minister is that the regulatory agencies have to be distinct from the Finance Ministry which looks after the commercial dealings and revenue collection,” he said.

The core function of the central bank remains unchanged under the Monetary Law Act, Banking Act and other relevant laws, he said.