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Sri Lanka state textile firm to shed staff

Jan 22, 2009 (LBO) – A partially operational state textile firm which is overstaffed and debt ridden would be restructured with about half its workers being laid off, an official said. Sri Lanka's overstaffed state-run firms eat up billions in tax-payer money. Lanka Salusala Ltd now has 298 workers.

The firm's board of directors was dissolved recently and a steering committee was set up under Ranjith Bandara, a senior lecturer at Colombo University, to come up with a re-structuring plan.

Discussions are underway to get 185 million rupees from the Treasury to start a voluntary retirement scheme, Bandara said.

The firm also has debt of more than 600 million rupees to settle, he said.

The steering committee is taking stock of assets and liabilities of the firm.

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