Crony capitalist Rajapaksa regime, the biggest under performer aims to take over under performing businesses

Sri Lanka government has planned to go ahead with the Revival of Underperforming Enterprises and Underutilised Assets Act despite opposition from the United National Party (UNP), Tamil National Alliance (TNA) and a wide section of private sector businessmen.

Accordingly, the bill is to be tabled in Parliament on 9 November by the Government, but the Opposition had given an early warning that it would be opposed.

Takeover Bill on underperforming State enterprises and underutilised assets came under fire by the Opposition at the Party Leaders meeting held in Parliament.

UNP and TNA questioned why it was being introduced as an urgent bill and stating that the Government should have had practiced basic democracy and common courtesy by having discussed it at the Parliament Consultative Committees.

The objective of Revival of Underperforming Enterprises and Underutilised Assets Act is to takeover enterprises with state exposure and a host of assets such as land and building. Defunct BOI approved private ventures also include into the category. Compensation is to be paid. They can be revived with government mediation either via restructuring or entering into new management contracts.

Though the Bill comes with a schedule of specified entities, the UNP warned that the Government could add more enterprises or assets by bringing in amendments to Act in the future.

UNP MP and spokesman on economic affairs Dr. Harsha de Silva said that the government was the biggest underperformer

Another crucial fact pointed out by the UNP was that the bill would scare the foreign investors who want guarantee of safety for their investment.

UNP further says the act violates economic freedom, definitely not of the poor man but of the capitalist class.

Sri Lanka government under President Mahinda Rajapaksa attempts to act as a top level company manipulating its state powers. It is similar to the economic policy of the former socialist block of Eastern Europe in many aspects.

The move is clearly against the neo-liberal capitalist principles promoted by the World Bank, International Monetary Fund and the World Trade Organization etc in the past period. They wanted the privater sector become the engine of the economy. What they meant by economic freedom was private sector been granted equality with the public enterprises. They prefer 'more equality' too.

Mahinda Rajapaksa government dreams to be a big privileged corporation with state powers. They are given tax money of people as investment and also tax exemptions etc. to compete with the private sector. Performances are irrespective. Losses are born by state and passed on to people. A new class of cronies of the government hold the management positions of these companies and at the same time or separately engage in contracts with these companies.

Some still call these moves peoplising attempts but this is sheer crony capitalism.