SriLankan to offer a whopping handshake to retiring employees – Cabinet
ECONOMYNEXT-The Cabinet has approved a Voluntary Retirement Scheme for 560 employees of SriLankan Airlines which will cost a whopping LKR 1.46bn, the Department of Government Information announced today.
A Three-Member Committee headed by the Secretary to the State Ministry of Aviation and Export Zones Development was appointed to study the aforesaid matter.
The committee recommended the implementation of the proposed Voluntary Retirement Scheme which will not hinder the operations of the company over the next three years.
Accordingly, proposal tabled by the Minister of Tourism to implement the aforesaid Retirement Scheme was approved by the Cabinet of Ministers.
Last week the government announced that the loss-making Airline would get a 150 million dollar cash injection in 2020 which would be part of a 500 million dollar to be injected in the medium term.
SriLankan had been making losses ever since its managing shareholder Emirate Airlines was removed and the privatization reversed in 2008.
However Prime Minister Mahinda Rajapaksa blamed the last administration for not injecting cash to the airline.
“Due to the suspension in 2015 of the 2013 commenced programme to strengthen the SLA by infusing capital of USD 500 million over 5 years, and the subsequent efforts to privatize the SLA, has made it financially weak,” he told Parliament. (Colombo/Nov17/2020)
Reported by Imesh Ranasinghe