Monday Dec 16, 2024
Monday Dec 16, 2024
Wednesday, 4 January 2023 00:33 - - {{hitsCtrl.values.hits}}
The Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday acknowledged that two major loss-making State Owned Enterprises (SOEs) have extended bonuses to their employees despite the overburden they have on the taxpayers and ignoring Government regulations.
When asked if the Government was aware that debt-ridden SOEs namely ─ Ceylon Petroleum Corporation and SriLankan Airlines have extended bonuses to their staff, Gunawardena acknowledged it responding to a query posed during the post-Cabinet meeting media briefing yesterday.
In November, President Ranil Wickremesinghe in his Budget speech mentioned December as the timeline for restructuring the five SOEs ─ CEB, CPC, Sri Lanka Insurance Corporation, SriLankan Airlines and Sri Lanka Telecom.
Many criticised that despite the Government noting that it wants to reduce the financial burden on the Treasury and taxpayers to provide necessary guidance and support in the restructuring process of the SOEs, the three most loss-making SOEs have extended bonuses to their employees.
“This is why the Cabinet of Ministers meeting on Monday approved the establishment of a 100% treasury-owned holding company to fast-track the restructuring of SOEs. If we do not restructure and make use of those assets to boost foreign exchange, none of the actions could materialise and the economy will come to a halt as we are in a very bad economic state,” he explained.
He asserted that it was critical to take quick measures to restructure these SOEs, cautioning that otherwise Sri Lanka will also fall into the same economic conditions as Afghanistan, Zimbabwe, and Sudan.
Separately, President Wickremesinghe ordered the two Chairmen of the CPC and SriLankan Airlines to submit a report on payment of bonuses at a time when both SOEs are running at a loss, a has also called for a report on the matter, a statement issued by the President’s Media Department noted.
