Treasury to settle allowance arrears of three loss-making state-run plantation companies

Amidst the mounting legal fees and difficulties faced by the employees and former employees, the government has decided to step in to settle the arrears of the statutory allowances of three state-run plantation companies and to recover the relevant amounts in instalments from the future earnings of those institutions. 
Accordingly, the Cabinet of Ministers this week approved the proposal presented by President Ranil Wickremesinghe to provide the necessary funds from the Treasury to pay the respective arrears of statutory allowances of Sri Lanka State Plantation Corporation, the Janatha Estate Development Board and Elkaduwa Plantation Company.
It was also decided to instruct the Commissioner General of Labour to reduce the maximum amount that can be deducted from the surcharges to be paid by these three loss-making institutions, as per the provisions of Employees Provident Fund Act No.15 of 1958, after the payment of the arrears of the statutory allowances.

“Since the earnings of those institutions are not sufficient to pay the arrears of the statutory allowances, it has been recognised that it is appropriate to provide the necessary money as a loan by the Treasury and settle the relevant amount in instalments from the earnings of those institutions,” the Government Information Department stated. 
Cabinet Spokesperson Minister Bandula Gunawardane acknowledged that there are over 2000 cases being heard in the courts of various provinces regarding the non-payment of the statutory allowances of Sri Lanka State Plantation Corporation, the Janatha Estate Development Board and Elkaduwa Plantation Company Limited. 
Therefore, he noted that the employees and former employees were put on a financially difficult position while these three plantation companies faced with mounting legal fees.
Planters Association of Ceylon Spokesperson Dr. Roshan Rajadurai this week highlighted that these three state-managed plantations, which remain at a dire condition, have been struggling to make the EPF, ETF and gratuity payments to their workers over the past decade. This has created severe financial strain on their employees, including the retired employees. He noted that some of the employees had even taken their lives being unable to cope with the financial conditions. (NF)