Home / TOP STORY / New laws to revamp RPCs: PM

New laws to revamp RPCs: PM


Comments / 828 Views / Thursday, 10 August 2017 00:21


  • Claims RPCs have benefited the most in past 150 years
  • Asserts country cannot pay the price for bad performance of RPCs
  • New management qualifications to be introduced to RPC board members

profileBy Charumini de Silva

Prime Minister Ranil Wickremesinghe yesterday confirmed that new laws will be introduced for regional plantation companies (RPCs) to improve productivity and make them accountable to Parliament.

Speaking at the Colombo International Tea Convention organised by the Colombo Tea Traders Association (CTA) to celebrate 150 years of Ceylon Tea, he claimed that RPCs had enjoyed most of the benefits of the tea industry and it was time for them to deliver as standalone companies.

“As far as the RPCs are concerned we will bring in a new law which will put out the duties and the factions. You will find more active golden shareholders, not the sleeping ones and they all will be accountable to Parliament,” he added.

Wickremesinghe said the Government will assess the performance of the RPCs. “The bad performers should exit the sector, while the good performers must be encouraged to modernise and go ahead and face competition from the other side. The country cannot pay the price for the bad performers.” 

He said that RPCs would have to become standalone companies and not as large groups added on to the balance sheets for them to get a better return or a price for their shares. 

“You are running a RPC that that is earning money for us. Don’t put it to get away with your imports of motor cars or bridges. Anyone who is a golden shareholder will have to be a standalone company. You can invest in the group, I have no problem with that, but we cannot get submerged,” he stressed.  

The Prime Minister also said that there will be qualifications introduced for directors who could be a non-working director and working director at RPC family holdings of 50 acres. 

“In some RPCs, they have directors who are common to all their boards. Some of them don’t even drink tea — they drink either coffee or brandy,” he quipped.  

 


Share This Article


COMMENTS

Today's Columnists

When political power is wielded by a small elite

18 August 2017

How did some nations, like a Japan, China, United Stated, become wealthy and powerful, while others remain stuck in poverty? And why do some of those powers, from ancient Rome to the modern Soviet Union, prosper for periods and then collapse? Pol...


Cleanse those ‘Augean Stables’ – don’t just bolt the barn doors!

18 August 2017

I am amazed – and amused – by the spate of “ministerial responses” to Ravi’s exit last week. The Prime Minister has promised to expedite the backlog of anticorruption cases his administration appears to have shelved f...


Risk management: Everyone’s business!

18 August 2017

Home truths   Organisations and their employees takerisks and also managerisksevery day.  Of course, it is a part of the business and the service delivery operations. However, often, the management of risks is confined...


Sri Lanka must move from politics to business

17 August 2017

Last week, the Yahapalana Government, which came on the promise of good governance and weeding out corruption, had its first blow, when a senior minister and deputy leader of the party had to resign over allegations of corruption. Whils...


Columnists More