We believe small government leads to more efficient and flexible systems, which is strongly needed for an emerging economy like Sri Lanka. Having large governments tend to have excessive red-tape and bureaucracy creating both incentives and opportunities for bribery and corruption. Further, evidence shows that most of the for-profit State-Owned Enterprises (SOEs) do not add any meaningful value to the national GDP, rather taking money out of the system due to high inefficiencies and mismanagements.
Sri Lanka has 500+ state-owned enterprises, and such a large number of SOEs are not normal globally. The majority of these SOEs are loss making mainly due to government mismanagement, inefficiencies, corruption and excessive employment due to fulfillment of current and previous government’s’ political ambitions. Their status of business as usual has become an unbearable burden to the hard-working tax payers of the country. Sri Lankan Airlines, Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board, Sri Lanka Post, Sri Lanka Railways, Port Authority to name a few. Given that the nation is on the verge of declaring bankruptcy, coupled with balance of payments crisis and potential government insolvency, our stance is to take immediate action to stop the internal cash bleeding by disposing the majority of these loss making entitles.