Selendiva to revitalise lagging State assets | Daily News

Selendiva to revitalise lagging State assets

Company fully owned by Government
Subject to scrutiny by Auditor General
Singapore’s Tamasek model to be followed

The Ministry of Urban Development and Housing yesterday denied rumours that the Government is planning to sell certain lands and assets including some historic buildings in Colombo to foreign companies through Selendiva Investments Limited.

Ministry officials told the media that the Government will develop under-performing and underutilised State assets through Selendiva as Urban Development and Housing Minister, Prime Minister Mahinda Rajapaksa has instructed to renovate and revive some of the dilapidated historic buildings in Colombo City that come under the purview of the Government.

Urban Development and Housing Ministry Additional Secretary Dr. M.M.S.B. Yalegama stated that the recently established Selendiva Investment Company is 100 per cent audited by the Auditor General and that this institution was established to strengthen the loss-making State enterprises and thereby generate revenue for the country. He was addressing a media briefing held at the Government Information Department.

He said plans are on to establish a National Business Authority to transform State-Owned enterprises into commercially viable enterprises in line with the manifesto of the President’s ‘Vision of Prosperity and Splendour’ and to transform them into profitable enterprises using best practices and prudent risk management strategies.

The company was formed following the example of the Tamasek investment model in Singapore. The 100 per cent State-owned company has 51 per cent of its shares open to the public and 49 per cent to the private sector.

Established with the objective of bringing loss-making State-owned enterprises and underutilised State-owned enterprises to profitability, the company operates under three clusters - Colombo Fort Heritage Square, Immovable Property Development and the Government Owned Hospitality Sector.

Additional Secretary Dr. Yalegama stated that the main objective of establishing Selendiva was to revitalize State enterprises that are a burden to the people.

“Selendiva Investment Company is 100 per cent state-owned and audited by the Auditor General. Selendiva was established to revitalise public enterprises that have been a burden to the people and to transform them into revenue earning enterprises without burdening the Government, as well as to develop existing public property in partnership with the private sector,” he added. Selendiva Investment Company Chief Executive Officer Shamahil Mohideen said that whatever investment is made, it will be fully under the control of the Government.

“The purpose of establishing Selendiva is to transform under-performing underutilized assets into profit making ventures.

The investment model has been included in the relevant Cabinet Paper.

The policy of the present Government is to transform State resources into profitable institutions by making structural changes without privatizing them. Selendiva will bring in foreign investment on this basis. According to Article (2) 04 of the Cabinet Memorandum, the Government holds 51 per cent of the shares and only 49 per cent is open to the private sector. Regardless of whether this 49% share goes to any institution or entity, the Company is fully controlled by the Government,” he asserted.