Friday Oct 30, 2026
Friday Oct 30, 2026
Friday, 30 October 2026 00:01 - - {{hitsCtrl.values.hits}}
The Cabinet of Ministers has approved a new framework for collective agreements in State enterprises, to be implemented from 1 January 2027.
The framework is based on the report titled “Performance and Sustainability Based Framework for Collective Agreements in State Enterprises,” prepared by an expert committee appointed by the Treasury Secretary.
At its meeting held on 11 May 2026, the Cabinet had decided to extend the existing collective agreements in public enterprises till 31 December 2026, under their current terms and conditions.
It had also decided to prepare a revised framework for implementation from 1 January 2027, and to appoint an expert committee to review the existing collective agreement mechanism and develop that framework.
“The committee compiled its report in consultation with the relevant parties,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa announced the decision at the weekly post-Cabinet meeting media briefing yesterday.
He said it also recommends that collective agreements in State enterprises be implemented subject to the Industrial Disputes Act, the Trade Union Ordinance, the Shop and Office Employees Act and other relevant labour laws.
In addition, the report makes recommendations on the profit distribution and bonus framework.
The proposal to this effect was submitted by President Anura Kumara Dissanayake in his capacity as the Finance, Planning and Economic Development Minister.
