The government has announced a massive voluntary retirement package to its employees in more than 50 institutions already identified for closure, merger or restructuring.
The institutions themselves will have to find the required funding to pay off those that are willing to take up early retirement.
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rnA Treasury circular says that identified government institutions can offer voluntary retirement schemes to excess staff with cabinet approval.rn
rnState Engineering Corporation, Export Credit Insurance Corporation and Lanka Cement Corporation have been ear marked for restructuring while about ten institutions, including the Building Materials Corporation, will be wound up.rn
rnFive will be merged with other institutions doing similar functions. The rest will either be divested or restructured.
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rnThe retirement benefit will be calculated taking in to account the number of years of service and also the number of years of service lost to the institution.rn
rnHowever, the package has been capped