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Land leases of state-owned companies with poor management to be cancelled

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The Cabinet has approved the appointment of a committee headed by the President’s Secretary to study and report on several issues, including the introduction of laws to cancel the lease agreements of state-owned companies with poor management which are unable to pay salaries.

Cabinet Spokesman, Minister Dr. Bandula Gunawardhana stated at the Cabinet press briefing held at the Government Information Department yesterday (23) that the proposal presented by President Ranil Wickremesinghe was approved by the Cabinet of Ministers.

He mentioned that by allocating government-owned land to investors who can utilize it more productively, both resources and employees can be developed.

Minister Dr. Gunawardhana also noted that although the government recently announced an increase in daily wages for plantation workers, some plantation companies have informed the government that they cannot afford the increased wages.

Consequently, the Ministry of Finance, Economic Stabilization, and National Policy is tasked with estimating the minimum wage to be paid to plantation workers, considering the current cost of living and the effects of the recent economic crisis. Additionally, they will assess the capacity of each plantation company to pay the estimated wage.

The Minister indicated that approval was granted to implement proposals for appointing a committee and introducing laws that allow the cancellation of land lease agreements with estate companies unable to pay salaries due to mismanagement.

The Minister further explained: “Due to the Covid-19 pandemic and the subsequent economic recession, there was a significant increase in price levels. During that time, a Rs. 10,000 allowance was provided to government employees as a remedy for the rising cost of living.

However, plantation workers did not receive a comparable increase, leading to a decline in their standard of living and nutritional levels. Consequently, trade unions associated with plantations consistently demanded wage increases to improve the living conditions of plantation workers.

“In response, the government announced a salary increase for these workers. Nevertheless, the estate companies complained that they could not remain competitive in the market due to the rising cost of production. Therefore, the President appointed special committees, headed by the President’s Secretary and involving other ministries, to conduct a comprehensive study and provide a report.”

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