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By Chamitha Kuruppu

The Government will shortly divest its 51% stake in Elkaduwa Plantations, Chairman of the Public Enterprises Reform (PERC) Commission Chrishantha Perera told the Daily News yesterday.

PERC will call for offers this week for the acquisition of 51% shares in Elkaduwa Plantations Limited amounting to 9,180,000 shares. The issued share capital of the Elkaduwa, Plantations which is fully owned by the government consists of 18,000,000 shares at par value of Rs.10 each.

Elkaduwa Plantations has 10 estates with nearly 4,052 hectares of land and has a 53-year lease commencing from 1993. This includes 1,218 hectares of tea, 1,475 hectares of land interplanted with rubber, coconut, cocoa and pepper.

Elkaduwa Plantations is currently managed by the Sri Lanka State Plantations Corporation. Interested parties are required to submit offers together with conditions to the offer and an undertaking to pay within two weeks from June 20,2003. The deadline for submission of offers is July 7.

A government appointed negotiating committee will invite all the parties who forward offers. The committee will finally identify and recommend for Cabinet Approval, the qualified party that will purchase the 51% shares of Elkaduwa Plantations pursuant to entering into a share and Purchase Agreement and a Shareholders Agreement with the government.

Perera said that divestiture of shares of the Chilaw Plantation Limited and Kurunegala Plantation Limited will be next in line to be called for offers.

Perera said that the PERC is in the process of studying nearly 30 state owned institutions for restructuring. He said that it is premature to name the institutions since studies are still under way but assured to be transparent in every dealing in the future.

When we say restructuring people panic thinking its privatisation or a sell of assets. But it could be a public private partnership, privatisation or mere restructuring with the same old management and working conditions, Perera said.

Almost 'every single public institution' needs to be studied closely and steps should be taken to identify what measures should be taken to perform better, he said.

" The business of government is not to be in business," Perera stressed.

He said that restructuring these institutions does not arise due to poor management skills but the present situation should be improved. The Sri Lanka Insurance Corporation (SLIC) is the best example, he said. The SLIC was performing well before privatisation but to add value to the industry and improve the service it was privatised, Perera added.

Asked about the privatisation of the 13 cluster bus companies Perera said that the PERC is unable to proceed with the deal due to a case pending in courts, filed by two employees of the Metro Bus Company. Next hearing of the case will be on July 11. Till the case is over we are unable to proceed with the deal, he said.

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