Sajith demands forensic investigation into SLT sale

Opposition leader

Sajith Premadasa

• Opposition leader highlights serious financial irregularities in SLT asset valuation and sudden losses
• Condemns and opposes attempts to devalue SLT assets for subsequent sale
• Wonders if this could be another case of capitalist political cronies profiting from the government deal
• Declares it a national crime to devalue and sell profitable state-owned enterprises like SLT

Opposition leader Sajith Premadasa has called for a forensic investigation into Sri Lanka Telecom PLC before any attempt is made to privatise the company.

Premadasa spoke in parliament yesterday about serious financial irregularities in the valuation of SLT’s assets and the sudden losses after many years of profitability.

According to Premadasa, SLT’s share price was based on a valuation of government assets of Rs. 400 million, while SLT’s 2023 financial report estimated the value of the same assets at Rs. 58,000.

“We condemn and oppose the devaluation of SLT in order to be sold,” he said.

The opposition leader also noted that SLT had been a highly profitable venture for many years, contributing Rs 25 billion to the exchequer in the form of taxes and dividends over the years.

He said the opposition accepts the need to privatize and restructure loss-making state-owned enterprises through proper methods, but questioned the government’s rationale for privatizing a profitable state-owned enterprise like SLT. “How can a profitable institution be sold in this way?” he asked.

The opposition leader noted that SLT had been making profits every year except one. “During the COVID-19 pandemic, the net profit was Rs. 12 billion. But then the chairman was removed and the profit suddenly fell, making it a loss-making company. How did that happen?” he asked.

Premadasa said that a forensic audit should be conducted before any steps are taken to privatise SLT. He also alleged that there was a lack of transparency in the process of selecting potential buyers and raised public suspicion that this could be another case of capitalist political cronies profiting from a government deal.

“It is a national crime to devalue and sell off a profitable enterprise. Is this another case of capitalist political cronyism profiting from a government deal?” he asked Parliament.