Sri Lanka to sell Lanka Hospitals, Colombo Hilton, Hyatt, Waters Edge and Mobitel on CSE
Nov 23, 2015 (LBO) – Sri Lanka’s government plans to sell some of state-owned non strategic investments on the Colombo Stock exchange to raise money to reduce debt, Finance Minister Ravi Karunanayake said delivering the 2016 budget in parliament.
“The government is keen to streamline its portfolio of investments and will therefore exit partially or fully from those non-strategic investments in Lanka Hospitals, Hotel Developers PLC (Colombo Hilton), Hyatt Residencies, Waters Edge, Grand Oriental Hotel, Ceylinco Hospital and Mobitel by listing such investments in the Colombo Stock Exchange during 2016,” Karunanayake said.
The portfolio of investments of the government includes not only state-owned enterprises engaged in maintaining and controlling key strategic infrastructure in power generation, transmission, ports, airports, water supply etc., but also investments in hotels, condominiums, etc. that are non-strategic.
He said that the government’s policy in SOEs will be driven by the strategic placement of its investments in relation to the economy.
Karunanayake said the monies generated through such listings will be used to retire high cost debt accrued by the former Rajapaksa regime.
“I note that the strategy of this government is not one sided in so far that while the government will not hesitate to exit from non-strategic assets, nevertheless the government will monitor the market and will also not hesitate to invest in strategic assets locally and internationally should it align with the economic policy of the country.”
Pretty naive if the government believes privatizations is the solution for every ill. In-fact all above listed are prime examples where government held organizations are doing well. They are hanging onto failed state enterprises while selling successful state enterprises.
On what planet do you live on mate? GOH, Hyatt (scam from top to bottom, with substandard building practices and a whole raft of problems it will present to the buyer) and Colombo Hilton prime examples of organizations doing well? If you live in Zimbabwe, maybe.
This is good move, all these institutes will have interest from the private investors. Government can use these funds in more relevant pulic interested areas such as pay off loans, invest on areas public will be more benefitting. Government prioritize should not be to own business but to create enabling environment for private investment.
and which private entrepreneur with a sound mind will invest in a failed company? any government whether sri lankan or otherwise can only sell enterprises that have profit making potential. the difference with some of the other countries was that they took measures to turn around lost causes and make them viable before offloading to private investors. pity they are not thinking of selling part of sri lankan airline. bet there will be quite a few takers.
Then why did you takeover the business of Avant Garde? Is maritime security a strategic enterprise?
no
its a security affair, we do not need floating armouries which could be infliltrated and used to threathen national security
Nope proving sea marshals to international ships were also taken by the government. End result will be we will lose this business to India.
Of course maritime security is strategic.. and at initial stages this was a business given st SLN..
political decisions have been taken by all. previous government took over some private companies and threw the owners out. before that there was land acquisition.
Sale @, theCSE suggestion may hint of an above board method under close supervision..Some of the assets & issues surrounding these & the vanity of some of the loans to be repaied iinany cases by the public are well discussed in pree election manifestos .No need to mention all seasoned political leaders will tread water cautiously for a win win for people,country,& political views they represent.With a Pledge by leaders of yahapalanaya to enact public right to know bill soon a useful & interesting new formations may be seen in the horizon.
What will happen to those shareholders who chose not to cash in their shares at the time of the illegal take over by the government. These shares keep on been registered in their monthly portfolio issue by the Central Depository System and is a clear acknowledgement of the legitimacy of ownership. These share should be re-validated. The move to take over the Hotel Devolopers Company appears to cover up the fraud connected to the construction of the building.