Inside Sri Lanka’s State-Owned Enterprise Crisis: Profitability, Losses, and Fiscal Reality
State-Owned Enterprises (SOEs) occupy a colossal footprint in Sri Lanka’s economic landscape, holding total assets valued at roughly Rs. 16.5 trillion, accounting for nearly 50% of the nation's GDP. While official registries estimate that there are around 527 state entities in total, encompassing various statutory boards, corporations, and fully owned companies, the Ministry of Finance actively monitors, reviews, and publishes detailed financial performance data for 51 to 52 strategic key SOEs . The financial year 2025 painted a challenging picture for the state enterprise sector, marked by fluctuating utility tariffs, structural debt burdens, and contrasting performances between commercial monopolies, state-backed financial institutions, and competitive commercial entities. Profit-Making SOEs: Performance & YOY Comparison Among the key monitored strategic enterprises, the vast majority operate with net positive bottom lines, heavily anchored in the banking,...