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Corporation Co-ordination Division

About Corporation Co-ordination Division



To lessen overviewing burden of State-owned Enterprises by the government.


To ensure effectiveness in public enterprise management and accelerate the divestiture of State owned Enterprises (SOEs) in order to ease the pressure on public expenditure.


  • To promote enterprise efficiency through improved corporate governance
  • To promote and accelerate wider participation of the private sector in the operation of SOEs.


  • Setting criteria to appoint Professionals/Experts as CEOs.
  • Setting objective criteria for selection of boards of directors.
  • Maintaining strict financial discipline by SOEs.
  • Making the management of SOEs accountable for overall performance.
  • Selection of the SOEs to be privatised with reference to their type of business, and other factors necessitating divestiture.
  • Selection of appropriate method for privatisation on a case by case basis ensuring a fair opportunity by all investors.


  • To allow government to concentrate on the business of government policy formulation.
  • To reduce the financial and managerial burden imposed on the government by SOEs.
  • To increase competition and efficiency and introduce technological modernisation as well as provide better consumer services.
  • To develop good management practices.
  • To accelerate the rate of growth of economy by stimulating private investment.
  • Improve the effectiveness and transparency of privatisation procedures and privatisation decision making.


  • To make a clear policy statement on privatisation considering the past experiences.
  • Formulation of Privatisation By-Laws/Procedural manual to ensure consistency in procedures for divestiture.
  • Revision of the privatisation process to streamline the present cumbersome and lengthy process.
  • Expansion of public awareness program on privatisation.
  • Privatisation of 12 SOEs at the end of FY 059/60.
  • Preparation of basic guidelines for Board members representing different SOEs.
  • Implementation of the recommendations of corporation reform committee applicable on pay structures and benefits systems, structural design and basic management systems/practices of SOEs.
  • Publish annual report on performance and targets of SOEs.


  • To carry out research, analyses, and discussion with the line Ministry.
  • To propose program of the privatisation to the privatisation committee.
  • Approval of time bound privatisation program by enlisting enterprises in different phases.
  • Approval on method and technique of privatisation and other issues.
  • Commission and approve valuation and other relevant reports.
  • Finalise and issue bidding documents.
  • Companies to be privatised are advertised in both national and international press.
  • Bids to be submitted in two envelopes technical and financial.
  • Select evaluation committee members & conduct evaluation.
  • Bids to be evaluated against predetermined evaluation criteria.
  • Approval of preferred bidder.
  • Finalise sales contract in discussion with preferred bidder.
  • Approval of finalised sale contract with preferred bidder.


  • Increased profits earned by SOEs
  • Reduced burden to the government treasury
  • Increased contribution of SOEs to the GDP
  • Number of units privatised
  • Reduced time from selection to privatisation
  • Amount of sales proceeds realised
  • Utilisation of sales proceeds
  • Change in employment
  • New technological innovations
  • Profit/Loss made by the privatised companies
  • Increased investments after privatisation
  • Revenue contribution after privatisation
  • Increase and diversification in production after privatisation
  • Increase in sales volume after privatisation
  • Increase in profit earned by SOEs
  • Decreased pressure in Government treasury for SOEs expenses

Monitoring /Reporting/Evaluation

  • Quarterly and annual review of performance against program
  • Post Privatisation monitoring of privatised enterprises to be undertaken annually both to ensure compliance with terms and conditions of transfer and to assess performance
  • Annual performance evaluation of SOEs
  • Environmental Scanning