The Cabinet of Ministers has approved a series of measures to address the long-standing issue of unpaid statutory allowances within the Sri Lanka State Plantation Corporation, Janatha Estate Development Board, and Elkaduwa Plantation Company Limited.
According to government sources, more than 2000 legal cases are currently pending in various provincial courts due to the non-payment of these allowances. The financial difficulties faced by these institutions have made it impossible for them to settle the arrears on their own.
To resolve this issue, the government has proposed providing the necessary funds through a Treasury loan. This loan will enable the institutions to pay off the arrears in statutory allowances, with the repayment being structured in installments based on the institutions' earnings.
Further, in line with the Employees Provident Fund Act No.15 of 1958, the Commissioner General of Labour has the authority to reduce the surcharges applicable to the overdue payments. The Cabinet has approved a proposal by the President to utilize Treasury funds to clear these arrears. Furthermore, instructions have been given to the Commissioner General of Labour to reduce the maximum permissible surcharge deductions once the arrears are settled.
This financial intervention aims to alleviate the burden on the affected institutions and ensure compliance with statutory obligations, thereby providing relief to the employees awaiting their due payments.
