- SriLankan and Litro included
- Transaction advisors to be selected soon
The Cabinet of Ministers has approved in principle the divesting of seven State-owned enterprises (SOEs) including those related to the sectors of hospitality, healthcare, and energy.
According to the SOEs Restructuring Unit under the Ministry of Finance, Economic Stabilisation and National Policies, Cabinet approval has been granted to the divestiture of the SriLankan Airlines Ltd. including the SriLankan Catering Ltd., the Sri Lanka Telecom PLC, the Sri Lanka Insurance Corporation Ltd., the Canwill Holdings Private Ltd. (Grand Hyatt Colombo), the Hotel Developers Lanka Ltd. (Hilton Hotel Colombo), the Litro Gas Lanka Ltd. including Litro Gas Terminals (Pvt.) Ltd., and the Lanka Hospitals Corporation PLC.
The Unit stated that it would appoint reputed, qualified and experienced consultancy firms and development finance institutions to provide transaction advisory services to assist with the divestitures, and that the process of selecting such transaction advisors would commence shortly.
“The transaction advisors will assist the Unit with selling side based due diligence, valuation, data room creation, the transaction strategy and the marketing of the entities to be divested. The divestiture programme will be carried out by the Unit in a transparent and credible manner and investor selection will commence with an expression of interest and request for proposal process to be published in the local and international press,” a statement issued by the Unit read.
The Government recently stated that it would embark on a process of implementing structural reforms to accelerate growth so that the country could emerge out of the current economic crisis. The SOEs sector, which for many years is said to have been a severe burden on the Sri Lankan economy, has been identified for reforms on a priority basis. These reforms are expected to contribute towards higher economic productivity by reducing market distortions, increasing organisational efficiency and improving the quality of the service provided to the public.
Source By themorning.lk
