ECONOMYNEXT – Sri Lanka’s cabinet had decided to expedite work on preparing “necessary laws to cancel the land lease agreements with the Government” by privatized plantations that do not pay the state mandated salaries, a government statement said.
Sri Lanka had mandated a 1,700 rupee a day wage to plantations workers, which the companies say will-undermine productivity based salaries and push up wage-costs above that of India and other and will lead to lower future investments.
On May 22, 2024 the cabinet had directed the Treasury Secretary to calculate the daily wage of plantations workers.
At the same meeting a decision was made to appoint a committee to ascertain the ability of each privatized plantation to pay the mandated wage.
Based on the recommendation of the committee on the ability of companies to pay the state mandated wage, a law will be prepared to cancel the land leases of privatized plantations companies.
The plantations companies had gone to court challenging the 1,700 rupees a day wage mandated by the government. The Supreme Court has suspended the wage order, pending a determination by lower courts.
The plantations privatized in the 1990s through long term leases, were originally expropriated from local and foreign investors after independence. (Colombo/July11/2024)