Sri Lanka Telecom outsourcing faulted by parliament oversight committee

ECONOMYNEXT – A parliamentary oversight committee has criticised Sri Lanka Telecom (SLT), the island’s main fixed line operator, for outsourcing services despite having a surplus of employees.

The parliament Committee on Public Enterprises (COPE) has rejected SLT’s explanation that outsourcing was necesary to prevent the collapse of consumer services during strikes.

“(The) committee was of the opinion that such claims were not plausible,” according to the COPE report shared during the third session of the eighth Parliament.

It recommended the secretary of the Telecommunications Ministry and SLT chairman conduct a performance audit to see if major services outsourced in 2016 and 2017 could have been done by employing internal staff.

The parliamentary committee noted that SLT was spending a huge amount as salaries and bonuses.

About 45 percent of the income of SLT was spent on employees, which it could not afford, the report said.

It said a voluntary retirement scheme costing about a billion rupees was introduced to shed 450 employees with the total employee surplus seen at 1,500 employees.
(Colombo/February 01/2019 – SB)

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