Government finalises transaction advisors for divestment of 7 SOEs

• IFC selected as transaction advisor for divestiture of SriLankan Airlines, Sri Lanka Telecom and Lanka Hospitals
• US-based Alvarez & Marsal Holdings chosen transaction advisor for divestiture of Sri Lanka Insurance Corporation
• Colliers Singapore selected to act as the transaction advisor for divestiture of Hotel Developers Ceylon Limited
• Deloitte India chosen to act as transaction advisors for divestment Canwill Holdings and Litro Gas 

The government has finalised transaction advisors to assist in the proposed divestiture of seven state-owned

enterprises (SOEs) as part of its SOE reforms programme.
Accordingly, the Cabinet Spokesperson Minister Bandula Gunawardana yesterday announced that the International Finance Corporation (IFC), the World Bank’s private sector investment arm, has been chosen as the transaction advisor for the divestiture of SriLankan Airlines, Sri Lanka Telecom and Lanka Hospitals Corporation. 

United States-based Alvarez & Marsal Holdings has been chosen as the transaction advisor for the divestiture of Sri Lanka Insurance Corporation while Colliers Singapore has been selected to act as the transaction advisor for the divestiture of Hotel Developers Ceylon Limited.

Similarly, Deloitte India has been chosen to act as transaction advisors for the divestiture of both Canwill Holdings and Litro Gas Ceylon Limited.

President Ranil Wickremesinghe sought the approval of the Cabinet Ministers to enter into relevant agreements with the selected institutions to move ahead with the divestment process. Gunawardana noted that expertise of globally reputed institutions is critical in the SOE divestment process.

The State-Owned Enterprise Restructuring Unit (SOERU) established under the Finance Ministry called for Expressions of Interest (EOI) and Requests for Proposals (RFP) under the international competitive procurement procedure to select transaction consultants following a Cabinet decision to restructure the above SOEs.

The Government Information Department noted that transaction advisors for the divestiture of Sri Lanka Insurance Corporation, Hotel Developers Ceylon Limited, Canwill Holdings and Litro Gas Ceylon Limited have been selected from the shortlisted proposals by the standing procurement committee appointed by the Cabinet of Ministers following the selection method based on quality and cost.

“The government believes that the appointment of these expert transaction advisors ensures an efficient and transparent divestiture process. By leveraging their expertise, the government is working towards the successful transition of these entities, which promotes economic growth and sustainability,” SOERU Director General Suresh Shah said in a statement.

The SOE reforms remain a key condition of the US$ 3 billion International Monetary Fund (IMF) rescue package Sri Lanka received in March. The SOE reforms are expected to enhance competition, productivity and efficiency across the economy, while reducing the burden on state coffers.