Sri Lanka to expedite work on law to re-expropriate privatized

Sri Lanka
By Editor_1
With already poor wages, tea plantation workers like these women, near the central Sri Lankan town Hatton, have suffered deeply during the economic crisis -Shefali Rafiq /TNH/File

COLOMBO – 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 plantation workers, which the companies say will undermine productivity-based salaries and push up wage costs above that of India and others and will lead to lower future investments.

On May 22, 2024, the cabinet directed the Treasury Secretary to calculate the daily wage of plantation 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 plantation companies.

The plantation 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.

-economynext.com

 

Editor_1
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