Lankapage Logo Recent Top Stories
CP 12 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka parliament permits the government to take over underperforming and underutilized industries
Wed, Nov 9, 2011, 10:12 pm SL Time, ColomboPage News Desk, Sri Lanka.

Nov 09, Colombo: Sri Lanka's parliament on Wednesday passed the "Revival of Underperforming and Underutilized Assets" bill with amendments empowering the government to take over some 37 businesses that have not performed up to the government's expectations.

The expropriation bill presented to the parliament yesterday by the Prime Minister D. M. Jayaratne amid strong objection from the opposition parties passed with a majority of 76 votes following the debate today.

The parliament voted 122 in favor of the bill and 46 against it. The opposition parties, United National Party, Tamil National Alliance and the Marxist party Democratic National Alliance voted against the bill.

The controversial bill came under severe opposition from the business community, opposition parties and some sectors of Buddhist monks despite the government's assurance that the proposed legislation is a 'one time only' bill.

The proposed takeover of underperforming businesses includes two listed companies, Pelwatte Sugar Industries and Sevanagala Sugar Industries.

During the debate Minister Jagath Pushpakumara told parliament that before venturing out the Sevanagala sugar producing facility to the private sector, the country's domestic sugar production was at 12 percent of the total need but under the private management the domestic sugar production dropped to 4 percent.

The Minister has explained further that the company has breached the terms and conditions of the business agreement by producing liquor.

He also has pointed out that the number of employees in the permanent cadre of the factory dropped to 168 at present from 800 in 2002, and an additional 1,200 casual employees have also been removed.

The parliament has taken the points raised by the Minister into account in their decision to nationalize the Sevanagala sugar manufacturing facility owned by the key UNP financier Opposition Leader of the Eastern provincial Council Daya Gamage.

The Supreme Court Tuesday cleared the bill saying that subject to the correction of drafting errors, the Bill or any of its clauses have not been found inconsistent with the Constitution.

The legislation according to the government would help revive loss making entities by converting them to profit making ones.

The 37 businesses, earmarked for takeover that includes one underperforming enterprise and 36 underutilized assets, have been given to investors years ago by the state.



ColomboPage - Recent 10 Stories
President to announce appointment of a new Governor of Central Bank today
-- [15 minutes ago]
Sri Lanka to conduct census on early childhood
-- [30 minutes ago]
Nearly 9000 military deserters get legally discharged during General Amnesty
-- [1 hour and 5 minutes ago]
South Eastern University suspends 331 students for ragging
-- [1 hour and 36 minutes ago]
Sri Lanka expects Brexit to impact country's debt burden as dollar rises against pound
-- [2 hours ago]
Sri Lankan government to develop infrastructure facilities in over 13,000 rural villages
-- [4 hours ago]
CSE wins National HR Excellence Gold Award at the National HR Conference 2016
-- [4 hours ago]
Government Leaders avoided responsibility by giving COPE to probe Central Bank Governor's appointment - JVP leader
Sri Lankan Government refutes misinformation on the proposed Constitution
Sri Lanka Navy arrests 9 local fishermen engaged in illegal fishing

Copyright © 2000, 2010 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.