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Estate wage: Termination of Govt.-RPCs land lease agreements soon?

Estate wage: Termination of Govt.-RPCs land lease agreements soon?

11 Jul 2024

  • New law to create colonies & villages in plantations by amalgamating houses & line rooms   

The Cabinet of Ministers has decided to accelerate the process of imposing the necessary laws to terminate the land lease agreements that the regional plantation companies (RPCs) have with the Government, specifically with regard to RPCs that have refrained from paying the recently hiked Rs. 1,700 minimum daily wage.

Previously, paying attention to the impacts of the cost of living and the economic crisis, the Secretary to the Ministry of Finance, Economic Stabilisation and National Policies was directed at the meeting of the Cabinet on 22 May of this year to estimate the wage to be paid to an estate labourer per day, and it was also decided to appoint a committee to confirm the capability of each regional estate company to pay the said wage. 

At the Cabinet meeting held on Tuesday (9), the latest decision in the context of the difficulties encountered by some of the regional estate companies in regard to the payment of a fair salary to estate workers was taken while noting that the RPCs have the capability to pay the same that has been entered into, per the recommendations of the abovementioned committee.

Furthermore, the Cabinet has also decided to establish new colonies/villages in the plantation sector. Since the public residing in houses in the estate areas are not precisely supplied with rural level services rendered by the State institutions, the requirement of converting estate housing areas to villages in order to treat them with dignity and respect has been identified. Accordingly, it is expected to introduce a new law amalgamating estate houses and line rooms available in estate areas and creating villages for them. Therefore, the resolution furnished by the President for instructing the Legal Draftsman to formulate a draft Bill for the purpose was approved by the Cabinet on Tuesday.

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