The government intervenes to carry out businesses for the welfare of the public
The government engages in business activities for the following reasons
• To control the unfavorable market situations in the private sector.
• To prevent monopolies
• To provide essential services to the public
• To minimize wastage of resources
• A State corporation is a business organization incorporated by a special or common act
owned completely or more of the ownership by the government and controlled by the board
of directors appointed by the government.
• Government Departments can be considered special institutions working under the
administrative regulations and financial regulations, directly controlled under a ministry and
often providing the services.
• Provincial councils, Municipal councils, Town councils and Pradeshiya Saba are also
engaged in business activities.
• All government sector businesses are known as public sector
• Privatization is one of the procedures introduced by the government to make the different
business in the public sector efficient.
• There are good and bad results in government sector businesses