State Owned Enterprises (SOEs) , governed by the "Administer Part II" of the Finance Act, No 38 of 1971 and the Companies Act, No. 07 of 2007, remain as an integral component of Sri Lankan economy, being most prevalent in strategic sectors of the country including energy, water, ports, banking and insurance, commuter transportation, aviation and construction.

At present, 287 SOEs are being monitored by the Department of Public Enterprises (PED) and the rest comes under the purview of the Department of National Budget (NBD). Out of the 287 SOEs, 54 SOEs have been identified as strategically important State Owned Businesses Enterprises that plays a catalytic role in transforming the country's economy to a high growth trajectory.

The PED introduced the concept of Statement of Corporate Intent (SCI), the tripartite agreement containing key performance indicators targeting the key activities of the entity in 2017. This was initiated with five Key SOBEs, Ceylon Petroleum Corporation (CPC), Ceylon Electricity Board (CEB), Sri Lanka Ports Authority (SLPA), Airport and Aviation Services (Sri Lanka) Limited (AASL) and National Water Supply and Drainage Board (NWS&DB). Such SCIs are monitored by PED and the PED submits a progress report to the Cabinet of Ministers periodically.