Though state enterprises were originally set up by acts of parliament, rulers later by-passed the parliament and started incorporating firms under the company law.
Many state enterprises are justified to make losses on the basis that they are 'providing a service' to the people.
Some state enterprises were started by expropriating enterprises set up by citizens and foreign nationals.
"Workers in loss making enterprises will get 1,000 rupees and workers in state enterprises that reduced losses would get 2,000 rupees," Rambukwelle told reporters.
Profitable state firms where employees were not given incentive payments could get up to 10,000 rupees as bonuses.
Sri Lanka has a large number of state enterprises that make losses and eat up tax money.
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The cabinet of ministers had allowed loss making firms to pay bonuses provided they had the cash to m