President, Ranil Wickremesinghe, has suggested blocking share transfers of privatised plantation companies, which may curtail the benefits of private ownership and undermine property rights.
Wickremesinghe proposed that companies should not be allowed to sell their shareholdings without the government’s consent once land has been allocated to them. Advocates of economic freedom argue that such restrictions on share transfers and state interference in private property would hamper private innovation in plantation companies, especially in fast-growing areas. Sri Lanka has a history of expropriating private properties, which has affected foreign and domestic investments.
Wickremesinghe’s statement comes as Sri Lanka is trying to bring back foreign investment and privatise remaining state enterprises, including some firms that were expropriated in 2011. The privatisation of plantations, which were consuming tax money, helped the British-era state generate income.
