The Frontline Socialist Party has accused the government of planning to close down or privatize a number of state institutions, raising concerns about the potential impact on essential services and employment.
During a media briefing, Wimal Vattuhewa, National Organizer of the Farmers’ Struggle Movement affiliated with the Frontline Socialist Party, stated that 166 institutions have been identified for closure or privatization. These include the Mahaweli Authority, Cashew Corporation, Paddy Marketing Board, and the National Post-Harvest Management Institute.
Vattuhewa referenced a review report on 166 state institutions submitted to the Cabinet on March 17, which proposed measures to address these institutions’ future. Cabinet Spokesperson Nalinda Jayatissa had previously noted that institutions like the Mahaweli Authority and the Paddy Marketing Board were established by the government due to a lack of private sector investment at the time. However, the review report suggests that the government may now be considering public-private partnerships or outright privatization to manage these institutions.
According to Vattuhewa, the Cabinet Review Committee has specifically recommended the closure of the Mahaweli Authority. He also mentioned that a similar proposal was made by the Yahapalana government several years ago, aimed at reducing the number of employees at the Mahaweli Authority and partially transferring operations to the private sector. The current government, however, appears to be moving beyond those plans and pursuing complete closure.
The Mahaweli Authority currently oversees approximately 1,722,920 hectares of land. The original development plan from 1980 intended to complete land development in three phases. While the first phase has been completed, only half of the second phase is finished, and the third phase has not yet begun. Consequently, land development in areas such as Anuradhapura, Polonnaruwa, Batticaloa, Trincomalee, Mullaitivu, Vavuniya, and Mannar remains incomplete. Vattuhewa warned that shutting down the Mahaweli Authority could result in the displacement of at least 210,105 families.
Despite assurances from Deputy Minister of Agriculture Susil Ranasinghe that the Mahaweli Development Program will be reactivated and completed under the Mahaweli Renaissance Program, Vattuhewa maintained that the government is moving towards privatization or termination of the project.
