The Ministry of Industries and Entrepreneurship Development is preparing to introduce a Voluntary Retirement Scheme (VRS) and compensation packages for employees of several state institutions scheduled for liquidation.
According to a senior minister, the scheme will cover employees of the Sri Lanka Cement Corporation, Lanka Cement PLC, Hingurana Sugar Industries Company, Kantale Sugar Industries Company, Small and Medium Enterprises Authority, Wood Based Design Centre, Kahatagaha Engineering Services Company and Embilipitiya Lanka Textile Mills.
The Cabinet had previously instructed the Ministry to appoint liquidators for 33 dormant state institutions as part of a wider reform programme aimed at preventing the wastage of public resources.
The minister said employees would be eligible for retirement packages once formal liquidation procedures begin. Where possible, permanent public sector employees could also be absorbed or redeployed to active government departments, statutory bodies or the Central Administrative Corps.
The issue has become particularly significant in the case of the Kantale Sugar Industries Company. Despite the institution remaining closed for more than 30 years, 32 employees who have already passed the mandatory retirement age of 60 reportedly remain on the payroll. Their salaries and related maintenance costs are estimated to cost the government around Rs. 1.7 million each month.
The minister said delays in commencing the liquidation process and appointing liquidators have resulted in employees of several dormant institutions continuing to receive salaries from public funds.
The National Audit Office has also raised concerns over the continued uncertainty surrounding the eight institutions awaiting liquidation.
Other prominent dormant state institutions slated for closure include Mihin Lanka (Private) Limited, Selendiva Investments Limited, Lanka Logistics and Technologies Limited, Magampura Port Management Limited, Express Transport (Private) Limited, Techno Park Development Limited, Thurusaviya Fund, Asian Games (Private) Limited, 2018 Hambantota Commonwealth Games (Private) Limited and the Media Training Institute.
