The Ministry of Industry and Entrepreneurship Development is preparing to implement a Voluntary Retirement Scheme (VRS) for employees of institutions under its purview that are scheduled for liquidation.
Employees of eight institutions, including the Sri Lanka Cement Corporation, Lanka Cement PLC, Hingurana Sugar Industries, and Kantale Sugar Industries, are expected to receive either a VRS package or compensation, according to a senior minister.
The move forms part of a broader reform programme aimed at closing 33 inactive state institutions to prevent the waste of public resources. The Cabinet had instructed the Ministry last September to appoint liquidators for the relevant entities.
The minister stated that employees would receive retirement or compensation packages once the formal liquidation process begins.
Where possible, permanent public sector employees may be absorbed or reassigned to active government departments, statutory bodies, or a central administrative pool.
The Auditor General has also pointed out that 32 individuals over the compulsory retirement age of 60 remain on the payroll of the Kantale Sugar Industries Company, despite the institution having been closed for more than 30 years. The government reportedly spends around Rs. 1.7 million per month on their salaries and maintenance costs.
The minister noted that delays in the appointment of liquidators and the formal liquidation process have resulted in continued expenditure on salaries for employees remaining at these inactive institutions.
The National Audit Office has also recently raised concerns over the continued uncertainty surrounding the liquidation of the eight institutions.
