23 February 2021 08:58 am Views - 224
By Shabiya Ali Ahlam
As majority of public institutions continue to record losses and lean towards the Treasury for support, Money and Capital Market and State Enterprise Reforms State Minister Ajith Nivard Cabraal said the grim performances are not essentially due to the inefficiencies within such entities but due to having to serve the public within the policies framed by the government.
Stating it is unfair to compare the performances of public institutions with the private sector, Cabraal said it is imperative that the business community recognises and acknowledges the efforts extended by the government and state institutions, as it is with their support that the private sector is able to maintain high performance and profits.
“Many people do not recognise the true value of the public sector, the impact created by these institutions.
You do not realise that some institutions (public) are not making profits, not because of their own inefficiencies but maybe because of the government policy, which is that you must give a particular service to people at a reasonable rate,” said Cabraal while addressing the Chartered Accountants (CA Sri Lanka) Public Institutions Annual Report Awards in Colombo, last evening.
He stated that if Sri Lanka Railway and Ceylon Petroleum Corporation wish to make profits, they could by increasing their fares and prices. Similarly, the Central Bank too could enjoy a profit in excess of Rs.60 billion, if they depreciate the currency by 10 percent.
“They are not expected to make profits in the same manner as the private sector and that recognition is important. That appreciation is important,” said Cabraal.
He stressed that the real role played by the public institutions is in maintaining stability and other aspects of the government, while assisting the private sector.
“The balance sheet of some of these institutions may look somewhat less rosy than what it should be. It is actually not so because they are actually providing a service, which is important in the context of the entire country,” pointed out Cabraal.