Out of 52 major state enterprises, 40 are profitable and 12 are incurring losses.

The financial performance of Sri Lanka's key state-owned enterprises during the first six months of 2026 has created a clear picture of two extremes. On one hand, 40 institutions, including state banks, reported profits in the billions, while on the other hand, 12 institutions, including the national airline, are trapped in massive financial risk, according to the interim data report on the mid-year state financial situation released by the Ministry of Finance.

According to these data, the three main state banks have taken the lead as the highest profit-making institutions. Bank of Ceylon reported the largest pre-tax profit of LKR 62.6 billion, while People's Bank earned LKR 32.6 billion, and National Savings Bank earned LKR 22.5 billion, showing high profits. The Employees' Trust Fund Board also succeeded in reporting a notable profit of LKR 36.5 billion.

The Sri Lanka Ports Authority, a key institution in the infrastructure and services sector, showed a profit of LKR 34.5 billion during the relevant six months. Additionally, the Ceylon Petroleum Corporation reported a pre-tax profit of LKR 29.1 billion, but the data report also indicates that a government subsidy of LKR 41 billion lies behind that financial report.

While Airport and Aviation Services (Sri Lanka) Limited reported a profit of LKR 24.8 billion, the National Water Supply and Drainage Board earned LKR 16.1 billion, and the National Insurance Trust Fund earned LKR 12.8 billion. It is also noteworthy that the Development Lotteries Board and the National Lotteries Board recorded equal profits of LKR 5.34 billion each. Furthermore, the Regional Development Bank reported a pre-tax profit of LKR 3.5 billion, Sri Lanka Insurance Corporation LKR 2.6 billion, Ceylon Electricity Board and State Pharmaceuticals Manufacturing Corporation LKR 1.4 billion each, and Milco (Pvt) Ltd LKR 999 million.

While the situation of profit-making institutions is as such, among the 12 loss-making state-owned enterprises, the most significant financial breakdown has been recorded by SriLankan Airlines Limited. The company, which incurred a loss of LKR 23.2 billion in 2025, has become the most crisis-ridden state-owned enterprise by reporting a massive loss of LKR 35.5 billion in the first six months of 2026 alone.

Moreover, some institutions that made profits last year have turned into loss-making entities by the first half of this year. The Sri Lanka Transport Board, which earned a profit of LKR 4.3 billion in 2025, has incurred a loss of LKR 471 million this time. The State Printing Corporation reported a loss of LKR 185 million, and the Independent Television Network a loss of LKR 37 million, reversing the profits they made last year.

Ceylon Sugar Company Limited incurred a loss of LKR 1.5 billion in the first six months of this year, which is a decrease compared to the LKR 3.1 billion loss incurred in 2025. State media institutions, Sri Lanka Rupavahini Corporation and Sri Lanka Broadcasting Corporation, reported losses of LKR 166 million and LKR 68 million respectively. The State Development and Construction Corporation reported LKR 193 million, the State Engineering Corporation LKR 182 million, and Lanka Sathosa Limited LKR 89 million in losses.

Amidst these highly disparate financial data, the government is preparing to implement a massive structural change in the state-owned enterprise system. Dr. Anil Jayantha Fernando, Deputy Minister of Finance and Planning, recently confirmed at an investor forum that many crucial changes regarding these institutions will occur through the new State-Owned Enterprises Bill, which is to be introduced soon.

The Deputy Minister, pointing out that "currently, there are 52,725 institutions identified as state-owned enterprises, but only a few of them operate as enterprises. Other institutions have different responsibilities," clearly articulated the government's future policy. "It must be clearly stated that the government has no desire to engage in business. The government only wants to act as a facilitator."

Under these new reforms, some enterprises will undergo reorganization or diversification, and some institutions are slated for merger. The government also expects to operate other institutions under partnerships with the private sector.

The objective of the new bill is to bring all these enterprises under a single common legal framework, replacing the currently diverse legal frameworks. Dr. Anil Jayantha Fernando further emphasized that the process of transforming state institutions into incorporated companies capable of making independent decisions regarding market conditions and risks will take some time, and the necessary legal amendments for this will be made in the future. In a context where some state institutions earn billions in profits while others drain public funds, this new bill will be a turning point in the structure of Sri Lanka's state institutions.