Sri Lanka’s SOE losses reverse trend; to post Rs456bn profit in 2023: Minister

Sri Lanka’s key state-owned enterprises (SOEs) have reversed its 2022 losses and made profits in 2023, State Finance Minister Shehan Semasinghe said after the government was forced to remove all the subsidies on energy following an International Monetary Fund deal.

Sri Lanka’s state-owned enterprises in 2022 made big losses as currency depreciation hit dollar loans, posting a loss of 743 billion rupees in 2022. Semasinghe said the same SOEs will report a profit of 456 billion rupees in 2023.

Such losses in the past have led the government to borrow more before an unprecedented economic crisis in 022.

“The Minister stated that the reason for recording this profit was the setting of cost-based prices at institutions such as the Ceylon Electricity Board (CEB) and the Ceylon Petroleum Corporation (CPC),” the Finance Ministry said in a statement.

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