Assisting in privatizing seven entities including SriLankan, Litro Govt. sets up restructuring Unit

• SRU will appoint recognized professional and qualified consulting firms  or development finance institutions to provide transaction advisory  services

By Darshana Sanjeewa Balasuriya  

The government has set up the State-Owned Enterprise Restructuring Unit (SRU) under the Ministry of Finance to assist in privatizing selected State Owned Enterprises such as Sri Lankan Airlines Ltd., including Sri Lankan Catering Ltd., Sri Lanka Telecom PLC and Litro Gas Lanka Ltd., including Litro Gas Terminals (Pvt) Ltd (LPG retailing).   

The Finance Ministry said that government is in the process of implementing deep economic reforms including in the State-Owned Enterprise (SOE) sector. Such reforms are intended to enhance competition, productivity and efficiency across the economy.  

Accordingly, the cabinet has approved the divestment of shares in Sri Lankan Airlines Ltd including Sri Lankan Catering Ltd., Sri Lanka Telecom PLC, Sri Lanka Insurance Corporation Ltd, Canwill Holdings Pvt. Ltd., (Grand Hyatt Hotel), Hotel Developers Lanka Ltd., (Hilton Hotel Colombo), Litro Gas Lanka Ltd., including Litro Gas Terminals (Pvt) Ltd., (LPG retailing) and Lanka Hospital Corporation PLC  

The Finance Ministry said that SRU will appoint recognized professional and qualified consulting firms or development finance institutions to provide transaction advisory services to the above entities and assist them in the transfer of share rights.  

They said the selection of such client advisory firms will begin shortly.  

The SRU will advertise in local and international media for the Expression of Interest (EOI) and Request For Proposal process (RFP) to select suitable investors for these transactions in a transparent and credible manner, the Finance Ministry said.