- Ministry of Finance

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PED/POL/2/ Circular
Department of Public Enterprises
29, April 2011
Public Enterprises Circular No.: PED 58
All Secretaries to the Ministries
Chairmen of Commercial Corporations, Statutory Boards and
State Owned Companies including State Banks
Categorization
of State Owned Enterprises and Payment of Allowances to Board of Directors
State Owned Enterprises (SOEs) vary in terms of size of operations, Government investment, total
assets, number of employees and their business complexity etc. Based on the source of financing
and the type of operations, SOEs are classified into two major categories.
1.1 State Owned Commercial Enterprises (SOCEs)
An enterprise incorporated by an Act of Parliament or under the Companies Act, owned and
controlled by the Government that generates its income from commercial operations opposed to
generating income through Government budgetary allocations is deemed to be a State Owned
Commercial Enterprise.
1.2 State Owned Non-Commercial
Enterprises (SONCEs)
An enterprise incorporated by an Act of Parliament, owned and controlled by the Government and
executes a statutory function without the main purpose of earning profit is deemed to be a State
Owned Non-Commercial Enterprise. This category includes statutory boards, regulatory bodies,
research organizations, universities and affiliated institutions. SONCEs that earn sufficient funds
for their operational activities are classified as Self Funded - SONCEs and SONCEs that operate
largely within Government budgetary provisions are classified as Budgetary Funded SONCEs.
To exercise proper supervision and monitoring role, Department of Public Enterprises (PED) has
classified the SOCEs and Self Funded - SONCEs into five sub- categories.
1.
2.
3.
4.
5.
Category
Category
Category
Category
Category
A: State Owned Enterprises
B: State Owned Enterprises
C: State Owned Enterprises
D: State Owned Enterprises
E: Regulatory Agencies
Please refer the list of SOEs classified under each category in the Attachment.
2. AllowancesjFees payable to Board of Directors of SOEs
Monthly allowances payable to Chairmen/ Executive Directors! Working Directors and fees
payable per sitting to Non Executive Directors/ Observers for attending Board Meetings/ Audit
and Management Committee Meetings of SOEs have been revised as indicated in table 1.
.~
Table 1 : Allowances/Fees
payable to Board of Directors of SOEs
Monthly Allowance (Rs.)
Category
A
B
C
Description of the
Category
SOCEs
and
Self funded
D
- SONCEs
Budgetary Funded
SONCEs
E
Fees per Sitting
(Rs.)
Non Executive
Directors /
Observers
90,000
70,000
60,000
Executive
Director /
Working Director
70,000
55,000
45,000
50,000
40,000
5,000
50,000
40,000
4,000
Chairman
Universities and
Affiliated Institutions
As approved
authority
Regulatory Agencies
75,000
by the appropriate
60,000
10,000
7,500
6,000
4,000
7,500
2.1
A Chairman who holds office as the Chairman of more than one SOE is entitled for full
allowance of one SOE and 50% of Chairman's allowance for anyone of the other SOE.
2.2
Where the enabling Act requires a public officer to function as Chairman / Executive
Director of a particular institution, such public officer may be paid 50% of the allowance
payable to the Chairman / Executive Director of such SOE.
2.3
A person who acts for the Chairman is entitled for an acting allowance of 50% of
Chairman's allowance for the period he/she works. Acting allowance is payable only if the
acting period exceeds 01 month.
2.4
The fees payable to Non Executive Directors and Observers for attending Board Meetings
or Audit and Management Committee Meetings are subject to maximum of two Board
Meetings and one Audit and Management Committee Meeting per month.
2.5
The Chairman, Working Direcfors and Executive Directors who are drawing monthly
allowances should not be entitled to receive the sitting allowance for attending Board
meetings.
2.6
Transport facility to attend the Board/ Audit and Management Committee meetings should
be provided to Non-Executives and Observers only. Alternatively, Board may decide either
to reimburse the transport expenses or to pay a transport allowance on a reasonable basis.
2.7
Clause 1.6 and 8.3.2 of the Public Enterprise Guidelines for Good Governance issued on 30th
May 2003 by the Department of Public Enterprises and Circular PED 4 issued on 1sl
January 2003 and any other direction issued by the Ministry of Finance and Planning on
this regard are hereby revoked.
"
Effective date of this circular will be on 1st May 2011.
For any clarification in this regard you may contact Mr. A. K. Senevirathne (Telephone No.
2484669) Additional
Director General, Department
of National Budget or Mrs. A.R.
Wickramasinghe, Senior Manager, Department of Public Enterprises (Telephone No. 2484997).
P.~J!
'
Secretary to the Treasury
cc:
1. Secretary to the President
2. Auditor General
Attachment
State Owned Commercial/Non-Commercial - Self Funded Enterprises
Category
A: State Owned Enterprises
6 Sri Lanka Ports Authority (SLPA)
7 Sri Lanka Insurance Corporation (SUC)
8 Board of Investments (BOI)
I Ceylon Petroleum Corporation (CPC)
2 Ceylon Electricity Board (CEB)
3 National Savings Bank (NSB)
4 People's Bank (PB)
5 Bank of Ceylon (BOC)
9 Airport and Aviations Services (Sri Lanka) Ltd. (AASL)
C- --
B: State Owned
Enterprises
,
19 Sn Lanka Land Reclamation & Development
20 Independent Television Network (ITN)
21 Lanka Mineral Sands Ltd
I Sri Lanka Transport Board (SL TB)
2 National Water Supply and Drainage Board (NWSDB)
3 State Pharmaceuticals Corporation (SPC)
4 National Lotteries Board (NLB)
5 Regional Development Bank (RDB)
6 Central Engineering Consultancy Bureau (CECB)
7 National Insurance Trust Fund (NITF)
8 Development Lotteries Board (DLB)
9 Lanka Sathosa Ltd. (Laksathosa)
10 Milk Industries of Company Ltd. (MILCO)
\I State Engineering Corporation
12 State Timber Corporation
13 Employees Trust Fund Board (ETF)
22
23
24
25
26
27
28
29
30
31
14 Housing Development Finance Corporation Bank of SL (HDFC)
15 State Mortgage & Investment Bank (SMIB)
16 Mihin Lanka (Pvt) Ltd.
32 Civil Aviation Authority
33 National Gem & Jewellery Authority
34 National Institute of Business Management
17 State Development and Construction
18 Ceylon Fertilizer Company Ltd
Corporation
Manufacturing
Corporation
(SPMC)
Urban Development Authority (UDA)
Kurunegala Plantations Ltd.
Chilaw Plantations Ltd.
SL Export Credit Insurance Corporation
Sri Lanka Bureau of Foreign Employment
Public Utilities Commission of Sri Lanka (PUSL)
Sri Lanka Accounting & Auditing Standards Monitoring
Sri Lanka Tourism Development Authority
Sri Lanka Tea Board
Board
.
(SD&CC)
.
C- --
State Pharmaceuticals
Corp. (SLRDC)
ed Enterprises
I Information & Communication Tech. Agency of Sri Lanka LtdC: State o~n Lanka Phosphate Ltd.
22 Elkaduwa Plantations Ltd.
2 Ceylon Fisheries Corporation
23 Paranthan Chemicals Co. Ltd
3 National Livestock Development Board (NLDB)
24 Lanka Logistics (Pvt) Ltd.
4 Colombo Commercial Fertilizer Co.
25 National Transport Medical Institute
5 Janatha Estates Development Board (JEDB)
26 Sri Lanka Handicrafts Board
6 State Printing Corporation
7: Lankaputhra
Development Bank
8 Ceylon Shipping Corporation
9 Sri Jayewardenepura General Hospital
]0 Sri Lanka Rupavahini Corporation
\I Paddy Marketing Board
12 Agricultural and Agrarian Insurance Board
13 Sri Lanka State Plantations Corp (SLSPC)
14 Sri Lanka Broadcasting Corporation (SLBC)
15 National Development Trust Fund (NDTF)
16 Local Loans & Development Fund (LLDF)
-
17 Kalubovitiyana Tea Factory Ltd.
18 Sri Lanka Savings Bank Ltd.
19 STC General Trading Company Ltd.
20 Rakna Arakshana Lanka Ltd.
27
28
29
30
31
32
33
34
Sri Lanka Ayurvedic Drugs Corporation
Sri Lanka Cashew Corporation
Lady Lochore Loan Fund
Distance Learning Centre
Mantai Salt Ltd.
35
36
37
38
39
Sugar Cane Research Institute
Condominium Management Authority
Sri Lanka Convention Bureau
Kahatagaha Graphite Lanka Ltd
Geological Survey & Mines Bureau
Land Reform Commission
Sri Lanka Institute of Tourism & Hotel Management
Land Survey Councils
40 Post Graduate Institute of Management
Cat, -.
J D: State OW,ned Enterprises
I Tea Shakthi Fund
2 Ceylon Fishery Harbour Corporation
3 Sri Lanka Carbon Fund Ltd.
16 Sri Lanka Thriposha Co. Ltd
17 Building Materials Corporation
18 B.c.c. Lanka Ltd
4
5
6
7
8
9
19 Lakdiva Engineering Co Ltd
20 Ceylon Ceramics Corporation
21 Lanka Cement Company Limited
22 Sri Lanka Cement Corporation
23 North Sea Ltd.
Corporative Wholesale Establishment (CWE)
Cey-Nor Foundation Ltd
Osu Govi Company Ltd.
National Equipment & Machinery Organization
Selasene Rupavahini
Sri Lanka Rubber Manufacturing & Export Corporation
'0 State Trading Cooperative
(PIM)
24 National Paper Corporation
25 Janatha Fertilizer Enterprises Ltd
26 Hingurana Sugar Industries Ltd
27 Kanthale Sugar Company Ltd
28 Lanka Fabrics Ltd
29 Lanka Salusala Ltd
30 Lanka Leyland Ltd
Wholesale Co Ltd.
\I National Film Corporation
12 Thurusaviya Fund
]3 Palmyrah Development Board
14 Skills Development Fund
15 POUPTO Lanka Pvt. Ltd
Category E: Regulatory A endes
I Securities & Exchange Commission
2 Telecommunication
of Sri Lanka (SEC)
Regulatory Commission
I
3 Insurance Board of Sri Lanka (lBSL)
of Sri Lanka (TRC)
~
...
State Owned Non-Commercial Enterprises - Budgetary Funded
61I Marine Environment Protection Authority
62! National Apprenticeship & Industrial Training Authority
63\ National Aquaculture Development Authority (NAQDA)
Hadabima Authority of Sri Lanka
2. Samurdhi
Authority of Sri Lanka
,
3 Arthur C Clarke Institute for Modem
Technology
64) National Aquatic Resources Research Dev. Agency (NARA)
65; National Building Research Organization
66; National Center for Advance Studies
4 Atomic Energy Authority
; Ayurvedic Medical Council
6, Buddhasrawake
Bhikku University
67, National Child Protection Authority
68: National Crafts Council
69I National Dangerous Drug Control Board
70I National Design Centre
, Buddhist & Pali University
8: Central Cultural Fund
9, Central Environmental
10) Ceylon-German
Authority
Technical Training Institute
II I Coconut Cultivation
12 Coconut
Development
13\ Coconut
Research Board
14)
71 National Engineering Research & Development
72! National Enterprise Development Authority
Board
Authority
73: National Housing Development Authority
74I National Human Resources Development Council
Colombo School of Computing
15; Consumer
Affairs Authority
16, Eastern University
17, Export Development
18: Gampaha
19I
Board
Wickramarachchi
Ayurveda University
Gem & Jewellery Research & Training Institute
20I Hector Kobbekaduwa
I Homeopathy
22 Industrial
Agrarian Research & Training Institute
Medical Council
Development
23I Industrial Technology
Board
Institute
24I Institute of Fundamental
Studies
25; Institute of Human Resource
266 Institute ofBio
Advancement
Chemicals Molecular Biology and Biotechnology
,
27 Institute of Construction
28g Institute of Indigenous
Training & Development
(ICTAD)
Medicine
75; National
76; National
Institute of Fisheries & Nautical Engineering
Institute of Education
77, National
Institute of Plantation
78\ National
Institute of Technical Education
79) National
80) National
Institute of Corporative
81I National
institute of Social Development
Institute of Language Education
Institute of Library & Information
83; National
84. National
Library & Documentation
85; National
Science Foundation
86, National
Secretariat for Disabilities
Science & Technology
877 National
Secretariat
88: National
Transport Commission
33\ Post Graduate
Institute of Agriculture
34 Post Graduate
Institute of Archeology
35; Post Graduate
Institute of English
& Training
Science
Service Board
Commission
for Elders
National Youth Services Council
9 I Sri Lanka Standards
I Open University of Sri Lanka
Institute of Pali & Buddhist
of Sri Lanka
Development
90) Sri Lanka Inventors Commission
Official Languages Commission
32! Post Graduate
Management
82! National
89I
29I Institute of Policy Studies
30)
92! Sri Lanka Sustainable
93: Sugathadasa National
Institution
Energy Authority
Sports Services Complex Authority
94I Superior Courts Complex Board
95; Swami Vipulananda Institute of Aesthetic
Studies
36, Post Graduate
96; Tea Research
38: Post Harvest Technology Institute
977 Tea Small Holder Development Authority
988 Tertiary & Vocational Education Commission
Institute of Medicine
37, Post Graduate Institute of Science
42 Resettlement
of Persons, Property & Ind Authority
Authority
43I Road Development
44I Rubber Research
Authority
4
7
Council
for Agriculture
Research Policy
4 I SL Press Council
University
50) Sir John Kotalawala
Training Authority
53\ SL Institute of Development
113I Wayamba University of Sri Lanka
114I Wijaya Kumaratunga Memorial Hospital
II ; Sri Lanka Institute of Information Technology
Administration
54) Social Security Board
; South Eastern University
; Southern Development
Authority of Sri Lanka
, Sri Lanka Accreditation
Board of Conformity
\ Sri Lanka Foundation Institute
Arts
110) University of Sri Jayewardenepura
II Uva Wellassa University
112! Water Resources Board
Defence Academy
I SL Institute of Local Governance
52! SL Vocational
Authority
102 University Grant Commission
103 University of Ruhuna
1077 University of Kelaniya
108: University of Moratuwa
109, University of Peradeniya
SL Freedom from Hunger Campaign Board
4 ) Sabaragamuwa
10 I Udarata Development
104 University of Visual & Performing
105 University of Colombo
106, University of Jaffna
Board
4 ; SL Book Development
46; SL Council
100) Tower Hall Theatre Foundation
Authority
Rehabilitation
4
Institute of Sri Lanka
99) Textile Quota Board
39I Rajarata University
40I Ranaviruseva
Centre
Assessment
116; Sri Lanka Textile Training Institute
II Sri Lanka Institute of Advanced Technological
II \ University of Vocational Technology
,
(Guarantee)
LTD
Education
I Institute of Technology
60I
Mahaweli Authority of Sri Lanka
~.