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Lay Off

February 28 (LBO) – Ceylon Hotels Corporation shares closed 11 percent up Wednesday after the group announced it had reached agreement with labour unions to trim staff. Ceylon Hotels Corporation will spend 174 million on a voluntary retirement scheme and group company Kandy Hotels, which owns Hotel Suisse, will spend 51.6 million, the two hotels said in statements.

The firms said the voluntary retirement scheme had been agreed with the unions at a meeting held at the ministry of tourism on February 26.

The deputy minister of tourism and the ministry secretary had also been present.

Ceylon Hotels Corporation shares closed up 25 rupees at 245 on Wednesday.

Kandy Hotels closed down 2.75 down at 65.25 rupees.

Sri Lanka's hotels saw a poor winter season with an escalating internal conflict hurting tourist arrivals.