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Can there be another Covid-19 wave in Sri Lanka?

Effects of privatization of gvt enterprises ?? Vote_lcap68%Effects of privatization of gvt enterprises ?? Vote_rcap 68% [ 178 ]
Effects of privatization of gvt enterprises ?? Vote_lcap18%Effects of privatization of gvt enterprises ?? Vote_rcap 18% [ 47 ]
Effects of privatization of gvt enterprises ?? Vote_lcap13%Effects of privatization of gvt enterprises ?? Vote_rcap 13% [ 35 ]

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FINANCIAL CHRONICLE™ » CHRONICLE™ SUPPORT » Quarantined » Effects of privatization of gvt enterprises ??

Effects of privatization of gvt enterprises ??

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laki


Senior Equity Analytic
Senior Equity Analytic

Effects of privatization of government enterprises... ??

wickide


Stock Analytic
Stock Analytic

Privatization.... may be 100% or partial but there are pros and cons of privatization of Gvt enterprises... I believe it is more towards positive specially a country like ours but except industries such as Health & education.... by in large there are cost and revenue synergies by privatizing a Gvt organization.

Cost Synergies...
many of private conglomerates have large scale of network distribution in which the company can have a balanced dispersion of branch network while accessing to a border market segment ( product or service Ex.. telecom) so distribution & logistic cost will be reduced mean time revenue can be increased by increasing the Qty , will be able to access to a more effective and efficiency production or service process where the unit cost can be reduced, also by using central service facilities (administration , research and development, accounting, taxation and shares processing operation) operational cost can be reduced ( economies of scale)

Revenue synergies
Increase the production/service and optimize the operation while using new Technology where the technology is the prime motivator in the private sector.

On the other hand, this will remove the Gvt monopolistic status in to a more competitive open market where competition will lead to generate/produce quality product or service. Also can be benefited from the relationship already has built with other Gvt institutions.. (ex; inland revenue)

These benefits merely not saying that, it is always positive it will depend on the industry and the market..

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