Ventures made more viable

Loss making State entities get boost :

Sanjeevi JAYASURIYA

Loss making state enterprises and under performing enterprises will be revived and made into profit making ventures by end of this year. The State Resources and Enterprise Development Ministry has taken measures to streamline operations of 23 enterprises which need financial and management support by infusing capital and managerial expertise to turnaround the ventures.

Dr Willie Gamage

These enterprises will made in to viable entities within this year, State Resources and Enterprise Development Ministry Secretary Dr Willie Gamage told Daily News Business.

“We will take action to reform all systems and procedures to ensure the conduct of business in an efficient manner deploying modern management techniques. These enterprises will be revived with financial assistance provided either by entering into joint ventures or operated on lease basis, Dr Gamage said.

“Three categories of enterprises have been identified to restructure under this program such as entities that can breakeven and could be converted into making huge profits, ventures that are already doing business but making losses and enterprises already closed down or on the verge of closure.

Under this program Salusala was revived and it earned an income of Rs 15 million through an exhibition conducted in Jawatte.

Many of the closed down outlets were re-opened and will function under a novel concept in keeping with the modern day consumer requirements. The staff members who were idle with the closure of outlets will be reinstated by the end of this year.

Laksala was another entity that was made into a viable venture from its Rs 7 million turnover to Rs 20 million at present. Measures have been taken to ensure continuous profitability of these ventures.

Lanka Mineral Sands Company and Lanka Phosphate Ltd will be made into ventures of national importance with infusion of capital and modern technology. The JICA will provide a credit line to upgrade the mineral factory.

This product has high potential to generate foreign exchange and is expected to reach Rs 5 billion turnover in three years. The proposal will be called to revive the Embilipitiya Paper Mill and also to re-start the Kankesanturai factory using wind power.