- To foot 50 per cent bill of 2 more companies
- Rs. 8.5 b needed to pay 1,896 employees
- Payments expected to be made within a week
The Treasury is to bear 100 per cent of the voluntary retirement scheme (VRS) compensation for employees attached to two newly established successor companies following the restructuring of the Ceylon Electricity Board (CEB). In addition, 50 per cent of the compensation for employees attached to two other post-CEB restructuring companies will also be borne by the Treasury. The total amount needed to compensate 1,896 employees is Rs. 8.5 billion.
Speaking to the media yesterday (11), Energy Minister Anura Karunathilaka said that employees who did not wish to continue their service in the four main newly created entities had been given the opportunity to retire voluntarily.
“We initially expected to pay the VRS compensation very quickly, but, due to several reasons, especially the financial condition of the CEB, we could not do so,” he said adding that nearly Rs. 8.5 billion would be required to pay compensation for 1,896 employees who had opted for voluntary retirement under the restructuring process. According to him, Cabinet of Ministers approval is to be granted for the Treasury to bear 50 per cent of the compensation payable to employees attached to the National System Operator (Private) Limited and the National Transmission Network Service Provider (Pvt) Ltd.
He added the Treasury would bear 100 per cent of the compensation payable to employees attached to two other companies, Lanka Electricity Generation Lanka (Pvt) Ltd and Electricity Distribution Lanka (Pvt) Ltd established under the restructuring process, and that the necessary Cabinet approval would be obtained shortly.
Speaking further, Karunathilaka said that steps are expected to be taken within this week to release the compensation payments. The comments came after the six new companies established through the dissolution of the CEB officially came into operation on 9 March. Under the restructuring process, the CEB Act, No. 17 of 1969 was repealed and the CEB ceased to exist as a corporate entity. The six newly established companies are Lanka Electricity Generation Lanka, the National Transmission Network Service Provider, the National System Operator, Electricity Distribution Lanka, Employees Fund (Pvt) Ltd and Energy Ventures Lanka (Pvt) Ltd.