The main objective of the paper is to develop a methodology for evaluating the comparative performance of public sector industries producing the same commodity, but operating in different socio-economic environments. However, a dully satisfactory methodology could not be developed as it had to be adjusted to the contents of available data which were collected prior to the formulation of any such methodology. What the paper, therefore, attempts to do is to indicate the essential ingredients of an appropriate methodology. These are applied on the data on the cement industry in three countries–Bangladesh, India and Sri Lanka–collected in the course of an IDRC Project on public enterprise performance. Value-added per unit of resource use has been used as the main criterion of comparing their performance.