Pushing Off

Sumith Arangala, Chief Executive Officer, LVL Energy Fund (left) handing over the agreement to Nanda Fernando, Managing Director, Sampath Bank

The bloated state run bus companies are the first to be auctioned off, with the Public Enterprise Reform Commission calling for expressions of interest from private firms on Wednesday.

rnrnThe government is looking at public-private partnership, giving private investors a 50 percent slice and the management contracts in each of the 13 bus companies.

rnrnldblquote We are looking for investors who can put in fresh money to improve the efficiency of bus services,
dblquote Advisor to the Prime Minister, R Paskeralingam told Lanka Business Online.

rnrnHe said the government is looking at raising around US$ 50 mn to 60 mn through the partial sale of bus companies. A further US$ 100 mn is expected when the ailing Railways Department comes on the block next month, he said.

rnrnDespite dominating 35 percent of the transport sector, state run bus service is cash strapped. Successive government
quote s have failed to revise fares according to keep in line with increasing costs.

rnrnThere is very little capit