We are not in a blind position that all existing state institutions should continue to operate in the same way, and that in the 1960s and 70s, when the private sector did not intervene, the state sector intervened and started a large number of industries and institutions. However, after 50 to 60 years, the national people’s forces (NPP) are not in a position to run those institutions, said Minister of Mass Media and Health Dr. Nalin de Jayatissa.

We will soon take a decision on the institutions that should be maintained and those that should be closed. 

The Minister said that the National People’s Power Government is a government that strengthens the public sector. Rs. 110 billion have been allocated this year for increasing salaries in the public sector alone, adding that another 330 billion rupees have been allocated for increasing salaries again in 18 months.

The Minister said this while responding to a question raised by journalist Shantha Wijesuriya of the Lanka Sky News website at a press conference held at the Government Information Department in Polhenagoda, Kirulapone.

Question raised by the journalist

The privatization program of state institutions came after 1977.
This is not a program that J.R. or the rulers who came after them brought according to their own will. It is a program of the International Monetary Fund (IMF) The National People’s Power government is also carrying forward the same policies of the International Monetary Fund. The IMF advises to shrink the public sector and expand the private sector. Will loss-making or profitable institutions be privatized under a National People’s Power government?

We hope to increase the maximum efficiency of public servants by increasing salaries to attract talented people from the society to the public service. We are giving the public sector the place and value it deserves. This means that the government is not in a position to maintain all existing public institutions in the same way, the Minister said.

Question –

It has been learnt that the Post Office, Rupavahini, National Rupavahani Corporation and the Sri Lanka Broadcasting Corporation are ready to be sold to the private sector. Aren’t the policies of the previous governments and the National People’s Power government the same?

Question – Has the Cabinet taken a decision to privatise state institutions including the Cashew Corporation and the Ports Authority?

Question –

The government decided to privatize Sathosa in September 2023.
228 employees retire by giving a letter on September 28. 353 million  rupees has been paid as compensation. A decision was taken in July 2023 to close down in September 2024. A few days later, the government changed. The Auditor General’s report states that the decision was not implemented. But after the decision taken in 2024 the government is changed 

At that time, 43 out of 51 lorries belonging to Sathosa were sold to two people. Sathosa has said that they will look into this. 37 lorries are decaying. 288 employees have lost their jobs but compensated. 
Lanka Sathosa started its work by hiring 32 workers without any appointment letter. There were two rice processing centers in Pannegamuwa and Hingurakgoda. One of them has a capacity to process 2000 kilograms of rice. The employees who worked in these have been sent home. 

How is this done when reactivating Sathosa? Will the new employees be recruited? What about the properties that were sold? Is there a plan for that?

Answer –

Regarding the Nuwara Eliya Post Office, I can answer without any problem as a Minister. Former President Ranil Wickremesinghe tried to sell the Nuwara Eliya Post Office by removing it from the Department of Posts. We have taken a decision that while the ownership of the Nuwara Eliya Post Office is with the Department of Posts, it should not be limited to postal services only but should be made an attractive place for tourists. There are several post offices in Sri Lanka that can attract tourists. A case is pending in the courts against this post office. We inform the court that it is the intention of the Department of Posts and the government to develop it while keeping it in the possession of the Department of Posts. For this, the Road Development Authority and the Tourism Board have appointed a technical committee and submitted a feasibility report. Therefore, the Nuwara Eliya Post Office should not be confused with other things.

The board of directors has presented a plan to develop an institution that has decided to close down Sathosa. How will wholesale business be conducted? How will the property be used optimally? Who will intervene in distribution? Short-term rental of properties, provision of transportation services, fuel distribution, and creating business opportunities that can sustain Sathosa. There is a plan prepared after a feasibility report for that. The report states that the board of directors should follow a recommended policy path. The cabinet paper was submitted to revoke the cabinet decision and the decision to close down. We will act accordingly. The question you raised about vehicles and employees will be discussed with the board of directors in the future and will be answered. 

Regarding the closure of Rupavahini,

A committee headed by the Prime Minister’s Secretary and other government officials was appointed with the approval of the Cabinet to submit a review report on government-owned non-commercial institutions. I published that Cabinet paper. The committee has submitted its reports on 160 institutions.

33 institutions are higher education institutions. A separate sub-committee was appointed for that and proposals were received.

The remaining 127 institutions have been classified under nine main categories and proposals have been submitted.

According to those proposals, regulatory institutions and institutions that provide policy advice to the government should be continued without making major structural changes, institutions that should be maintained with good coordination, management and integration to provide efficient and effective services.

Institutions to be merged to form a new national research institution.

Institutions to be merged to establish a national social security fund.

Institutions to be reorganized.

Institutions that should be operated in a commercial model, institutions that should be studied by an expert committee with local experience or that should be reviewed and recommendations should be obtained. Institutions that should be intervened or closed by the government for management

These institutions have been classified into nine categories and the proposals for them have been put forward by the committee headed by the Prime Minister’s Secretary.

None of these proposals are final decisions.

They are just a number of proposals that were submitted after looking at the original purpose of establishing each of these institutions. Performance in the current situation. Are there other such institutions in the public service and whether there is diversification within these institutions.

There are 21 institutions that need to be studied or partially reviewed and recommendations should be obtained by an expert committee with local experience. It is not a final document but just a number of proposals.