The radical communist, socialist government of Sri Lanka will be acquiring the 51 percent stake in Shell Gas Lanka from Royal Dutch Shell (NYSE:RDS-A) for $63 million.
Marxist-run trade unions and leftist, liberal political parties were outraged that they weren't allowed to dictate prices and other business decisions rather than allow the company to operate as a private enterprise.
Cabinet Spokesman Keheliya Rambukwella said, "The cabinet approved the government to buy 51 percent of Shell Gas at $63 million and the government will have the controlling power."
"We had so many issues with the company. The Trade Ministry had no control in
pricing and had to go to court several times on price changes. So in that
backdrop, this is a good move," Rambukwella added.
Sri Lanka is among the most anti-private business countries in the world, as they have followed a zero privatization policy for the last five years, catering to the liberal, left, Marxist elements in trade unions.
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