A Swot Analysis For Privatization In Sri Lanka.

27th June 1997

Pon.Kulendiren. Dallas, Texas.

A SWOT analysis based on weighting factors is a guide for decision making to go for Privatization or not. Strengths and weaknesses arise from the internal factors. Opportunities and Threats focuses on external factors. The list is extensive. The weighting on each factor depends on the priority and the impact on the economy and Image of the country.

STRENGTHS
Availability of human & natural resources.
Availability of skilled labour.
High percentage of literacy.
Fairly good infrastructure.
Less risks due to natural disasters.
Good climatic conditions.
A democratic political environment.
Relaxed exchange control.
Fairly good administrative structure.
Agricultural economy.

WEAKNESSES
Existing ethnic crisis.
Drain on Financial and Economic resources due to the war.
Destruction of Ecology and Agricultural lands and infrastructure.
Loss of valuable productive effort and time.
Loss of confidence of foreign investors.
Unstable political situation.
Bribery & Corruption in many sectors.
Outdated Administrative system.
Poor Communication and Transport system.
Outdated educational system.
Lagging in latest Technology.
Active Trade unions and political interference.
Lack of dedication, honesty.
High rate of inflation and unemployment.
Weakening Rupee value.
Rising cost of living.
Skills not matching the need and Technology.

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OPPORTUNITIES

Influx of foreign investment to stimulate economy.
Import of latest Technology, Management Techniques (JIT), and Training.
Chance for Industrial training to match the skills.
Opportunity for training abroad and learn new methods.
Better interaction with outside world.

Building of confidence of the donor countries.
Possible reduction in the Unemployment and inflation..
Revision of the Educational system to meet the needs of the country.
The chance to build and expand the infrastructure.
Use of SYNERGY to optimize productivity.
Growth of new Industrial towns and decentralization of population.

THREATS
Foreign influence on culture.
Trade union action and labour unrest.
Protests from nationalists and Religious clergy.
Imposing Trade quotas by foreign countries due high production.
Environmental pollution due to new industries.
Multinational influence on the Economy and Politics and Fiscal policies.
Possibility of the influx foreign skilled labour.
Loss of existing benefits and priveleges such as leave, overtime, official telephone etc if remuneration is productivity based.

©Pon.Kulendiren

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