By The Pulseline News Desk
Sri Lanka has commenced liquidation proceedings for 33 selected State-Owned Enterprises (SOEs) as part of its ongoing state-sector restructuring programme, even as 51 major state-owned enterprises collectively reported profits of Rs. 259.3 billion during the first six months of 2026.
The Ministry of Finance, Planning and Economic Development has said a specialised SOE Reform Unit, established under the Ministry in March this year with Cabinet approval, is currently overseeing the liquidation process involving the 33 selected entities.
The move forms part of the Government’s broader efforts to restructure the state-owned enterprise sector, address longstanding financial obligations and improve the management of public-sector institutions.
Meanwhile, the Treasury is also implementing measures to settle accumulated liabilities relating to Employees’ Provident Fund (EPF) contributions, Employees’ Trust Fund (ETF) contributions and gratuity payments owed by selected state-owned enterprises.
According to the Ministry, Rs. 5 billion was allocated under the 2026 Budget to settle these outstanding obligations, of which Rs. 2.8 billion had been fully disbursed by the end of August 2026.
The settlement of these liabilities is expected to address longstanding employee-related obligations associated with the selected enterprises.
However, the SOE sector has also faced external pressures during the year, particularly due to the ongoing conflicts in the Middle East.
The Ministry has noted that the sector experienced several operational challenges during the second quarter of 2026, including rising raw material costs, supply chain disruptions and the cancellation of orders.
Despite these challenges, the financial performance of the country’s 51 major SOEs has shown an improvement during the first half of the year.
The enterprises collectively have recorded a profit of Rs. 259.3 billion between January and June 2026, compared with Rs. 227.8 billion during the corresponding period in 2025.
This represents an increase of Rs. 31.5 billion, or approximately 13.8%, year-on-year.
The figures indicate that the combined profitability of the major SOEs has improved, although the financial performance of individual institutions and the wider restructuring process remain important considerations in assessing the overall health of the sector.
The Government’s parallel efforts to liquidate selected enterprises, settle accumulated employee liabilities and monitor the financial performance of major state-owned institutions highlight the different dimensions of its ongoing SOE reform programme.
The progress of the liquidation process, particularly the treatment of outstanding liabilities and employee entitlements, will remain an important aspect of the restructuring exercise.
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