Effectiveness of the Privatization Process on the Government Coconut Plantation Companies in Sri Lanka

During the past three decades economic reforms in the world were designed to expand the role the market economy through privatization. Most of the researchers have strongly documented that after being privatized, firms became more profitable and operating efficiency and dividend payments have significantly improved. The economic turnaround in Sri Lanka came about in 1990’s, most of the public sector commercial organizations including the plantations managed under public sector were privatized.This research compares the financial performance, physical performance and employee perception of the two coconut plantation companies under the management of private sector and government during the period from 2000 to 2009. Data was collected using annual reports, progress reports of the Kurunegala Plantations Limited and Chilaw Plantations Limited and questionnaire of the two companies. Data was analyzed by using descriptive statistical methods such as mean, standard deviation, co-relation and co-efficient. It is documented that significant improvements in financial performances, physical performance and employees’ satisfaction of both the companies under government management. When compared with the previous studies these results strongly reject that private management system is more efficient than government management.DOI: http://dx.doi.org/10.4038/kjm.v1i2.6528 Kelaniya Journal of Management Vol.1(2) 2012:86-106</p