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Monday June 3rd, 2024

Sri Lanka President announces record wage hike for privatized plantation workers

ECONOMYNEXT – Sri Lanka President Ranil Wickremesinghe announced a 70 percent increase in the daily wage of plantation workers to Rs. 1700 in an unprecedented move amid his plans to run for presidency later this year.

Wickremesinghe announced the wage hike when he addressed the May Day rally of the Ceylon Workers’ Congress (CWC) held in the central Sri Lankan town of Kotagala, an area predominantly plantation workers live.

“It was the up country people who suffered the most during the hard times. But they were the people who also worked hard to produce tea and ensured foreign exchange,” Wickremesinghe told the May Day rally.

“I don’t think nobody wants back to 2022. We have suffered a lot. Now we have stabilize somewhat. The rupee has strengthened,” he said referring to the 2022 economic crisis that led to a political crisis and ousting of former president Gotabaya Rajapaksa and his government.

“Yesterday, Manusha Nanayakkara (Labour Minister) has raised the daily wage to 1,700 rupees.”

The upcountry people and their relatives have a strong vote base of around 1 million spread throughout the country. The main political party in the upcountry CWC had already pledged its support to Wickremesinghe if he contests in the presidential election.

Wickremesinghe has yet to declare his candidacy for the presidency, but his United National Party (UNP) sources have said he is likely to contest under an independent coalition.

The presidential election will be held between September 18 and October 18.

Currently, plantation workers receive Rs. 1000 basic wage plus EPF/ETF and after plucking the set target of 20 kg, they are paid an additional Rs. 40 a kilo.

It is not immediately clear how the local plantation firms could afford the wage hike given the island nation is one of the countries with the highest cost of production compared to India and Kenya due to lower labour productivity.

Sri Lanka’s plantation companies in March proposed a 33 percent increase in take-home wages based on a productivity model or a 22 percent increase in wages on the attendance-based model. The total of that model would have been around 1,500 rupees, plantation sources said.

Based on President Wickremesinghe’s request Regional Plantation Companies (RPCs) and the Employers Federation of Ceylon (EFC) have submitted the proposal to Labour Minister Manusha Nanayakkara on a proposed wage hike for the sector.

The minimum wage was increased to 1,000 rupees in October 2021, but plantation workers have complained that it was insufficient due to the high cost of living after Sri Lanka’s unprecedented economic crisis. (Colombo/May 1/2024)

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Water levels rising in Sri Lanka Kalu, Nilwala river basins: Irrigation Department

Sri Lanka Navy assisting in rescue operations (Pic courtesy SL Navy)

ECONOMYNEXT – Sri Lanka’s Irrigation Department has issued warnings that water levels in the Kalu and Nilwala river basins are rising and major flooding is possible due to the continuous rain. People living in close proximity are advised to take precautions.

“There is a high possibility of slowly increasing prevailing flood lowline areas of Kiriella, Millaniya, Ingiriya, Horana, Dodangoda, Bulathsinhala, Palinda Nuwara and Madurawala D/S divisions of Ratnapura and Kalutara Districts, up to next 48 hours,” it said issuing a warning.

“In addition, flood situation prevailing at upstream lowline areas of Ratnapura district will further be prevailing with a slight decrease.

“The residents and vehicle drivers running through those area are requested to pay high attention in this regard.

“Disaster Management Authorities are requested to take adequate precautions in this regard.”

The island is in the midst of south western monsoon.

DMC reported that 11,864 people belonging to 3,727 families have been affected due to the weather in Rathnapura, Kegalle, Kilinochchi, Jaffna, Mullaitivu, Kalutara, Gampaha, Colombo, Galle, Matara, Hambantota, Puttalam, Kurunegala, Kandy, Nuwara Eliya, Anuradhapura, Polonnaruwa, Badulla, Moneragala, and Trincomalee districts.

Meanwhile, the Meteorology Department stated that showers are expected on most parts of the island today.(Colombo/June3/2024)

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UNP gen secy defends call for postponing Sri Lanka poll, claims opposition silent

The UNP party headquarters in Pitakotte/EconomyNext

ECONOMYNEXT — United National Party (UNP) General Secretary Palitha Range Bandara has defended his call for postponing Sri Lanka’s presidential election by two years, claiming that his proposal was not undemocratic nor unconstitutional.

Speaking to reporters at the UNP headquarters Monday June 03 morning, Bandara also claimed that neither opposition leader Sajith Premadasa nor National People’s Power (NPP) leader Anura Kumara Dissanayake have spoken against his proposal.

“I have made no statement that’s undemocratic. My statement was in line with provisions of the constitution,” the former UNP parliamentarian said.

He quoted Section 86 of Chapter XIII of the constitution which says: “The President may, subject to the provisions of Article 85, submit to the People by Referendum any matter which in the opinion of the President is of national importance.”

Sections 87.1, 87.2 also elaborates on the matter and describes the parliament’s role, said Bandara.

“I spoke of a referendum and parliament’s duty. Neither of this is antidemocratic or unconstitutional. As per the constitution, priority should be given to ensuring people’s right to life,” he said.

“Some parties may be against what I proposed. They may criticse me. But what I ask them is to come to one position as political parties and make a statement on whether they’re ready to continue the ongoing economic programme,” he added.

Bandara claimed that, though thee has been much criticism of his proposal for a postponement of the presidential election, President Wickremesinghe’s rivals Premadasa and Dissanayake have yet to remark on the matter.

“I suggested that [Premadasa] make this proposal in parliament and for [Dissanayake] to second it. But I don’t see that either Premadasa nor Dissanayake is opposed to it. To date, I have not seen nor heard either of them utter a word against this. I believe they have no objection to my proposal which was made for the betterment of the country,” he said. (Colombo/Jun03/2024)

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300 of 100,000 trees in Colombo considered high risk: state minister

ECONOMYNEXT – Trees in Sri Lanka’s capital Colombo are being monitored by the municipal council, Army and Civil Defense Force as the severe weather conditions continue, State Minister for Defense Premitha Bandara Tennakoon said.

“Within the Colombo Municipal Council city limits, there are 100,000 trees. Of these, around 300 are considered high risk,” Tennakoon told reporters at a media conference to raise awareness about the current disaster management situation.

Not all trees required to be cut down he said. “We can trim some of the branches and retain them.”

The problem was that buildings in the vicinity of the tree had cut branches on one side, causing it to become unbalanced, the minister said.

New laws would be brought in so provincial/municipal institutions could strengthen enforcement of building codes.

“We don’t have a single institution that can issue a warning about a tree. Not one to tell us what trees can or cannot be planted near a road.

“Trees should be suitable for the area. Some trees have roots that spread and damage roads, buildings. When the roots can’t go deep, they tend to topple over.

“Now Environment Day is coming up, and anyone can go plant a tree by the road. We have to take a decision about this. We have to enforce laws strongly in future.” (Colombo/June3/2024)

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