Sri Lanka government no longer sells public enterprises, Attorney General clarifies in SC

Colombo: The decision to sell off the state enterprises by the previous government has been abandoned, the Sri Lankan government informed the Supreme Court.

Sri Lankan Airlines, Sri Lanka Telecom, Sri Lanka Insurance and Lanka Hospitals would not be sold, said Attorney General Parinda Ranasinghe Jr., addressing the 3-member bench on Thursday.

This comes after a fundamental rights petition was filed to challenge the Cabinet decision by the previous government headed by the then President Ranil Wickremesinghe.


Under the International Monetary Fund (IMF) bailout-linked reforms, these institutions were required to be divested to minimise losses to the state.

The Supreme Court concluded the case following a submission by the attorneys for the petitioners.

In view of the government's decision to abandon the previous Cabinet decision, it was no longer intended to proceed further, the apex court said.

The IMF Extended Fund Facility (EFF) said that the reforms must ensure that they avoid the accumulation of losses in state enterprises. They do not become a burden for the budget, and they must be managed prudently to eliminate fiscal risks.

In a separate development on Thursday, President Anura Kumara Dissanayake and the IMF delegation held talks to assess the nation's progress on reforms under the IMF bailout.