The current Sri Lanka labour laws are over 100 years old and they are currently being changed in line with modern day requirements, said Advisor to the Minister of Labor and Foreign Employment, Shan Yahampath at the Sri Lanka Economic summit organized by Ceylon Chamber of Commerce in Colombo yesterday.
He said today due to these shocking and unconventional labour laws,investors are shunning away from Sri Lanka. He said that according to the current law a labour union could be set up even if a company has 10 employees. “Under the new laws this number is increased to 50 or 100.” He also said that if the trade unions want to strike the EXCO of the trade union cannot decide that but it has to be approved by a majority of its members and subsequently the Labor Commissioner must endorse it. Also the employer should be informed at least three weeks in advance.”
He also quipped that today it’s easier to get a divorce rather than getting a fraudulent or non performing worker dismissed and this area too is being addressed. Yahampath also said they are also introducing new laws to protect labour and staff.
Meanwhile, Minister of Power and Energy Kanchana Wijesekera said that the unbundling of the power sector has already commenced and should be totally completed in less than three years. He however stressed that the Hydro power sector would not be privatized as it government believes they are also needed to power the irrigation and other essential sectors. CCC Chairman Duminda Hulangamuwa said that privatization of the power sector was discussed way back in 2001 in parliament and when the government changed it was scrapped and the history should not repeat this time as well.
Director General, State Owned Enterprises Restructuring Unit (SRU) Suresh Shah said that SOE reforms were talked about for many years but never happened but this time around they also have people’s support to carry it forward. People know the situation they faced due to the economic crisis and Sri Lanka even had to borrow from a country like Bangladesh which was created after Sri Lanka.”
He identified providing subsidies to SOE as the main cause of mounting debt and SOE’s to be in the red. “Subsidized electricity and water tariff, providing fuel on credit to state owned institutions and Srilankan and state banks to finance SOE’s were some other key mistakes successive governments made.” in addition one other main area was appointing unqualified members to SOE boards and stuffing them with unqualified employees.”
He said that some of the sensitive and important SOE’s would remain with the government.
