Resource Library

Economic Review

Globalization- Challenges & Opportunities

Publisher: People,s Bank

Place of Publish: Sri Lanka, Colombo

Year: 2007

Page Numbers: 45

Series: Volume 32-33/ Number 1-3,10-12 / January/June 2007

Acc. No: 157-J

Category: Journals

Languages: English

In this article, Priyanthi Fernando aims to explore the socio-economic impact of privatization on employees. Fernando then goes on to give readers an overview of privatization in Sri Lanka. The rationale for privatization of state-owned enterprises (SOEs) is that it increases efficiency and thereby increases growth and profitability. However there are negative impacts on employment opportunities and consumer prices, which impact the poor, the disenfranchised and the workers who remain, while benefiting the already rich and privileged. In Sri Lanka, since the 1980,s the number of public enterprises, as well as the share of employment provided by the public sector, has declined with the emergence of the private sector. In light of these issues specific measures have been incorporated into the privatization of public enterprises in Sri Lanka. Some of these measures are better information about the reform process and the likely impact on workers, additional support for employees who voluntarily take early retirement and space for support for public enterprise reform among employees who are often unhappy about poor management.