brand logo

Over Rs. 1 bn sought for State construction wages 

12 Oct 2022

  • Minister Prasanna presents Cabinet paper including Rs. 164 mn wage arrears
Chief Government Whip and Urban Development and Housing Minister Prasanna Ranatunga has presented a Cabinet paper to approve an amount of Rs. 1,232 million from the Treasury for the payment of arrears in wages to the employees of the State Engineering Corporation (SEC) and the National Equipment and Machinery Organisation (NEMO). According to this paper, an amount of Rs. 164 million is required to pay the salaries of the employees of both the organisations for the period up to September of this year. Also, an amount of Rs. 1,068 million is required to pay employee salaries from October to March of next year. Both these institutions are engaged in Government-owned construction activities, but due to the negative situation affecting the construction industry in the last few years, both the organisations have been operating with limited activities, earning only the basic cost of the workers. Also, Ranatunga has indicated in the relevant Cabinet paper that factors such as the unusual increase in the price of construction materials and the restriction of public sector construction activities during the Covid-19 pandemic situation, have adversely affected these two institutions. In the midst of the economic difficulties caused due to this, the inability to pay the employees led to unrest and strikes on several occasions. Therefore, Ranatunga has indicated in the relevant cabinet paper that if the payment of wages is further delayed, this situation is likely to worsen. Further, Ranatunga states that the necessary measures to merge the NEMO under the SEC are already underway.  


More News..