Frontline Socialist Party lashes Govt. over plans to close down SOEs

The Frontline Socialist Party (FSP) lashed out at the government for planning to close down state institutions or to privatise them.

 

National Organiser of FSP-affiliated Govi Aragala Viyaparaya Wimal Waththuhewa told a media briefing that Mahaweli Authority, Cashew Corporation, Paddy Marketing Board and National Post Harvest Management Institute are among 166 that are earmarked for winding up or privatisation.

 

“A review report on 166 state institutions has been already submitted to cabinet on March 17, and it has been decided that appropriate action will be taken with regard to Mahaweli Authority, Cashew Corporation, Paddy Marketing Board and National Post Harvest Management Institute. Cabinet Spokesman Nalinda Jayatissa told a recent briefing that some institutions such as Mahaweli Authority and Paddy Marketing Board were started up by the state as there was no one in the private sector to invest in them. Does this mean that the present government is planning to involve the private sector in running these institutions? As per the review report, the government is planning to wind up some institutions, some to be run as public-private partnerships and to fully privatise a few others,” Waththuhewa said.

 

“The recommendation made by the cabinet review committee is to wind up Mahaweli Authority. The Yahapalana government also came up with a similar proposal some years ago. The plan at that time was to reduce the number of employees of Mahaweli Authority and hand over a stake to the private sector. However, the present government is planning to go beyond that move and to wind it up,” he added.

 

“Some 1,722,920 hectares come under the purview of Mahaweli Authority. The plan back in 1980 was to develop these lands in three phases. The first phase of it has been completed, while only half of the second phase is completed. The third phase is yet to begin. Accordingly, the development of lands in Anuradhapura, Polonnaruwa, Batticaloa, Trincomalee, Mullaitivu, Vavuniya, and Mannar is yet to be completed. At least 210,105 families are running the risk of getting displaced if the authority is wound up,” he also said.

 

Waththuhewa said the government’s plan to wind up or privatise despite assurance given by Deputy Minister of Agriculture Susil Ranasinghe that Mahaweli Development programme will be reactivated and the leftover work under the project would be completed under the Mahaweli Punarudaya programme.