-By A Investigative Correspondent
(Lanka-e-News -08.Feb.2025, 11.00 PM) Ah, Sri Lanka—the land of stunning beaches, fragrant tea, and, apparently, a never-ending soap opera featuring State-Owned Enterprises (SOEs), political intrigue, and a suspiciously well-connected Chartered Accountant named Suresh Kumar Shah. The plot thickens as reports emerge suggesting that the restructuring of major SOEs like SriLankan Airlines, the Ceylon Electricity Board (CEB), and the Ceylon Petroleum Corporation (CPC)—spearheaded by none other than Mr. Shah—has come under criminal investigation.
Why? Well, let’s dive in.
In 2022, under then-President Ranil Wickremesinghe, an interim budget allocated a cool Rs. 200 million to the Restructuring SOEs Unit. The plan was simple (on paper, at least): revive the financial health of bloated, debt-ridden SOEs, turning them from money-guzzling behemoths into sleek, profit-generating machines. But, as always, the devil is in the details.
Enter Suresh Kumar Shah, a Chartered Accountant by trade, former CEO of Lion Brewery, and current Chairman of Ceylon Tobacco Company. Not exactly the résumé you’d expect for someone tasked with resuscitating national institutions teetering on the brink of collapse. But hey, in Sri Lanka, sometimes the less qualified you are, the higher you climb.
Now, with criminal investigations looming over this high-profile project, the nation is left wondering: Was this “restructuring” an economic CPR or just a corporate heist dressed in government-sanctioned paperwork?
On the surface, Shah appears to be your typical corporate executive. A Chartered Accountant with a seemingly successful stint at Lion Brewery, he also climbed the ranks to become Chairman of Ceylon Tobacco Company—because who wouldn’t want to pivot from beer to cigarettes? But the question that’s been bugging many is this: What exactly qualified him to overhaul multi-billion-rupee SOEs?
Did he have a track record of rescuing floundering public enterprises? Not that we know of. Did he have insider knowledge of the challenges facing state utilities? Unlikely. But what he did have were powerful political connections and a history of making his corporate interests thrive in the murky waters of Sri Lankan bureaucracy.
One can’t help but wonder if Shah’s appointment was less about expertise and more about, shall we say, strategic relationships.
Let’s take a brief detour to Shah’s time at Lion Brewery, where things start to smell a little less like hops and a lot more like political maneuvering. During his tenure, Lion Brewery allegedly gained a suspiciously dominant foothold in the market. The question is: Was this due to brilliant business acumen, or did Shah have a little help from his friends in high places?
Rumors abound that Shah used his influence to push for restrictions on the importation of foreign beers—a convenient move that just so happened to eliminate competition and cement Lion’s monopoly. And who was conveniently in a position to help? None other than then-Finance Minister Ravi Karunanayake, whose reputation for, shall we say, “flexible ethics” is well-documented.
If this is true, it raises some serious questions. Did Shah’s Lion Brewery benefit from backroom deals and manipulated policies? Were competitors squeezed out through regulatory sleight of hand? And, perhaps most importantly, were there political donations exchanged to grease the wheels? An audit of Lion Brewery’s financial records, particularly its political contributions, might offer some illuminating answers.
If running a beer monopoly wasn’t enough, Shah somehow found himself perched at the top of Ceylon Tobacco Company, one of the most powerful corporate entities in Sri Lanka. This transition—from brewing ales to hawking cigarettes—might seem odd, but when you consider the political leverage required to navigate both industries, it starts to make sense.
This raises another pressing question: How exactly did Shah secure his position at Ceylon Tobacco? Was it purely merit-based, or was there more wheeling and dealing behind the scenes? The NPP government would be wise to investigate not only his appointment but also his remuneration package and tax affairs. After all, a man who jumps from one lucrative post to another without a clear track record of public service success is bound to raise eyebrows.
Now, back to the SOEs. The restructuring initiative was supposed to be a turning point—a chance to finally untangle the web of inefficiency and corruption strangling Sri Lanka’s public sector. But with Shah at the helm, skepticism was inevitable.
Critics argue that instead of genuine reform, the restructuring process was little more than a smokescreen for privatization deals that would benefit a select few at the expense of the public. SriLankan Airlines, CEB, and CPC aren’t just businesses; they’re national assets. Handing them over to private interests under the guise of “reform” without transparent processes or public oversight is a recipe for disaster—and potential corruption.
With criminal investigations now probing into the restructuring funds and decisions, it’s essential to ask: Was the Rs. 200 million allocated to this project used appropriately? Were there any kickbacks, misappropriations, or conflicts of interest? And most importantly, was the public ever truly the priority?
Here’s where things get even more interesting. If Shah was indeed involved in manipulating import laws to establish a beer monopoly, as some allege, this might not just be a Sri Lankan problem. Such actions could potentially violate U.S. federal laws, especially if American businesses were affected or if any financial transactions crossed U.S. borders.
The Foreign Corrupt Practices Act (FCPA), for instance, is notoriously unforgiving when it comes to international bribery and corruption. If Shah’s dealings touched U.S. interests, it’s not out of the realm of possibility that American authorities could get involved. And that, my friends, is a can of worms Sri Lanka might not be ready to open.
The new NPP government faces a daunting challenge. On one hand, they must navigate the treacherous waters of public sector reform; on the other, they need to root out the corruption embedded in these very processes. Investigating Shah’s appointment, his financial dealings, and the true nature of the SOE restructuring is a crucial first step.
But it shouldn’t stop there. A broader audit of how SOEs have been managed, who has benefited from their inefficiencies, and whether political donations have influenced corporate appointments is essential. Transparency isn’t just a buzzword—it’s the lifeline Sri Lanka needs to restore faith in its institutions.
At first glance, the restructuring of SOEs under Suresh Kumar Shah might have seemed like a step in the right direction. But as the layers peel back, it’s clear that this was no ordinary corporate overhaul. Whether it was beer monopolies, tobacco chairmanships, or questionable political connections, Shah’s career is a case study in how power and privilege can intersect with public policy in ways that leave citizens worse off.
The question now is: Will the investigations reveal the full extent of the corruption, or will this be just another scandal swept under Sri Lanka’s already bulging rug?
For the sake of the country—and its long-suffering taxpayers—let’s hope the truth comes out. Because in the end, restructuring shouldn’t mean dismantling public trust. And if Suresh Kumar Shah is found guilty of exploiting his positions for personal gain, he should face the full force of the law, both in Sri Lanka and beyond.
After all, as the saying goes: No man is above the law. Not even a Chartered Accountant with a knack for climbing corporate ladders.
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by (2025-02-08 19:46:24)
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