Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Performance and Issues of Other SOEsservices provider to the nationbut also facilitate Sri Lanka’s bidto be a regional ICT hub.Although SOEs constitute a verylarge segment of the economy,their performance seems to behampered by• Lack of clear understanding of themandate (objectives) of the entity,therebyo engaging in non coreactivitieso engaging in activitiesthat are not in line withgovernment policyo reliance on governmentbudget• Human resources issueso excess employeeso lack of employees with coreskillso irrational recruitments andappointments• Weak balance sheets that continueto erode capital expansion andthereby deteriorate productivity.• Boards of Directors that do nothave the managerial competenceand the capacity to managethe organization thereby takingimprudent decisions.• Boards of Directors and corporatemanagement who disregard bestpractices in corporate governanceand government policy anddirections.• Lack of proper accounts and clearassessment of financial performancesin facilitating decision making.Improved performance of many ofthe following SOEs would requireconsiderable improvement incorporate governance, appointmentof competent CEO’s, professionals forprocurement, Finance, HumanResource Management and otherkey managerial positions, adoptionof realistic pricing and investmentstrategies, institutionalizing ofperformance audit and financialmanagement controls, strictadherence to the annual budgets andcommitment controls in expendituremanagement.Performance Issues ChallengesTourismSri Lanka Tourism Promotion Bureau(SLTPB)• Has recorded a surplus of• Lack of effective promotionRs 14 Mn in 2010.strategy to attract tourists.• Undertakes extensive promotionalactivities in existing markets andhas not focused in developingpotential new markets.• Lack of coordination with otheragenciesSri Lanka Tourism Development Authority (SLTDA)• Recorded surpluses from 2008 at an • Lack of coordination with otherincreasing trend, with a surplus of Rs 65 activities of the tourism industry,Mn in 2010so that no proper contribution• Hotel projects have been initiated by towards the overall performance ofleasing lands to the private sector,the sectorcovering one aspect of the targeted • Mismatch between the expectedobjectives, but more important areas of outcomes and the presentthe objective seems neglected.operations• To formulate a marketing strategyin order to achieve Government’starget of attracting 2.5 millionand 4 million tourists by 2016 and2020 respectively.• To enhance the coordination withthe other activities of the tourismsector• To be amalgamated with theConvention Bureau in order toavoid the duplication of work andexpenditure incurred.• To position Sri Lanka as a premiertourist destination.231