COLOMBO (News 1st) – Sri Lanka's Central Bank Governor stressed that State-Owned Enterprises need to be reformed so that they are not a burden on the economy."For us to come of the crisis we have to address the root causes of the imbalances.
This is where the government will have to collect more revenue, curtail expenditure, and maintain a sustainable level of sovereign debt.
As a result, there will be a benefit in the overall macro point of view for the monetary policy, exchange rate policy, and the external current accounts," he told a Post-Budget Forum in Colombo on Tuesday (15).According to the Central Bank Governor, the structural issue that Sri Lanka has been facing is the State Owned Enterprises Operations and the losses that they have been making, adding that it has become a huge burden on the banking sector, and also the government. "The Next step is to transform all these state-owned enterprises and how they can make contributions without being a liability and a cost to the economy.