SLPA clarifies “baseless” reports against Magampura Port

Following is a statement by the Sri Lanka Ports Authority on reports against Magampura Port:

Our attention has been drawn to erroneous speculations and to several inaccurate and misconceived reports relating to the Magampura Port Management Company Ltd. (MPMC) and Sri Lanka Ports Authority (SLPA). 

The allegation that the employment of the workers of MPMC has been terminated is false and SLPA categorically rejects same. The salaries of all employees for November have been paid despite attempts by some workers to cause delays in such payment by sabotaging the administrative functions of MPMC. We understand that MPMC will continue to pay salaries till further notice/till further steps are taken according to law.  MPMC has clearly and repeatedly given the employees these assurances, however the workers for reasons best known to them have continued to engage in illegal and wrongful activities that prejudice the security of the Magampura Port and the general need for law and order in the area.

There are proceedings before an Industrial Court to decide what relief the employees of MPMC are entitled to upon MPMC’s closure. Both SLPA and MPMC will continue to participate in these proceedings. MPMC has also offered to all its employees a “voluntary resignation scheme” with substantially higher compensation than what is required in terms of the law, which a group of employees has already accepted. 

As is common knowledge the Magampura port in its present state is economically nonviable and the State is saddled with heavy debt and debt servicing costs. As such the Government took a policy decision to enter into a Public Private Partnership in order to infuse needed investments to the Magampura port to make it financially viable and to reduce public debt. In order to facilitate this MPMC which itself has to service colossal debts to local banks and was substantially reliant on business redirected from Colombo Port, has to handover the Magampura port back to the SLPA. 

It is in these circumstances that MPMC asked its employees not to report to work from 30 November. MPMC has no work to offer but has nonetheless assured employees that their salaries will continue to be paid as stated above. As such it is inaccurate and deliberately misleading to state that SLPA and/or MPMC have acted contrary to the law. 

SLPA will continue to work towards the just resolution of the issues relating to the employees of MPMC while being mindful of the broader national economic interest of the State which in the ultimate should be of concern to all.