Colombo, Apr 3 The decision to sell off state-owned enterprises by the previous government has been reversed, the Sri Lankan government informed the Supreme Court.
Sri Lankan Airlines, Sri Lanka Telecom, Sri Lanka Insurance, and Lanka Hospitals will not be sold, according to Attorney General Parinda Ranasinghe Jr., who addressed the 3-member bench on Thursday.
This follows a fundamental rights petition filed to challenge the Cabinet decision by the previous government, headed by then-President Ranil Wickremesinghe.
Under the International Monetary Fund (IMF) bailout-linked reforms, these institutions were required to be privatized to minimize losses to the state.
The Supreme Court concluded the case following a submission by the attorneys for the petitioners.
In light of the government's decision to reverse the previous Cabinet decision, it was no longer intended to proceed further, the apex court said.
The IMF Extended Fund Facility (EFF) stated that the reforms must ensure that they avoid the accumulation of losses in state enterprises. They should not become a burden on the budget, and they must be managed prudently to eliminate fiscal risks.
In a separate development on Thursday, President Anura Kumara Dissanayake and the IMF delegation held talks to assess the nation's progress on reforms under the IMF bailout.