Business
At long last pockets of support emerging for wage reforms in RPCs
The Planters’ Association of Ceylon (PA) has commended the government and trade union representatives for voicing preliminary support for long-overdue reforms to the archaic colonial-era daily attendance-based model in favour of a productivity-boosting modern Revenue Share Model.
The PA’s statement came following tentative support for wage reforms expressed by a high-ranking official of the Ceylon Workers’ Congress on social media. The official stated that a meeting was held with the President to propose a new revenue-sharing model, which aims to strike a balance between workers’ livelihoods and the sustainability of companies to address wage disparities.
While certain stakeholders have advocated limiting workers’ pay to a mere Rs. 1,000, over the years, PA has consistently championed and promoted a model that empowers workers to earn beyond this threshold. “For more than a decade, the PA has steadfastly maintained that the only way for Sri Lankan plantations to achieve operational sustainability is through the abolition of the daily attendance-based model in favour of a revenue share, similar to what has been practiced on tea smallholder estates with enormous success,” PA media spokesperson Dr. Roshan Rajadurai stated.
Dr. Roshan Rajadurai
“While Trade Unions have typically been entrenched in their opposition to such reforms, we are encouraged to see the growing realisation among these stakeholders as to the value of this model for workers. Especially since more RPCs have been exposed to this model of working, they too are pushing Trade Unions to support these reforms to move ahead. We maintain that a revenue share model is the only viable way to ensure the feasibility of Sri Lanka’s tea industry without compromising on our obligation to provide our employees with a sustainable and rewarding livelihood.” Dr. Rajdurai added.
Under the revenue share model, workers stand to benefit from flexible working hours, allowing them greater control over their schedules and improved worker mobility. This flexibility enables other family members to contribute to the earning process, fostering a sense of economic empowerment within plantation communities.
According to PA, empirical evidence demonstrates that harvesters have significantly increased their output from 18 kgs to 24 kgs on estates where productivity-linked wages have been trialled, resulting in earnings surpassing Rs. 65,000. “Several RPCs that have already implemented this system have witnessed remarkable progress, with workers earning two to three times the wage they would have otherwise received. The Revenue Share Model’s flexible working hours have unlocked the potential for increased productivity in previously unharvested areas, addressing labour shortages and boosting overall plantation output,” added Dr. Rajadurai.
PA further emphasized that shifting from the daily wage model to the revenue share model also offers a solution to the escalating migration of labour, exacerbated by recent economic challenges. Currently, the workforce within RPCs has reduced from 300,000 to approximately 100,000. This transition can help reverse the alarming trend of labour migration out of the plantation sector, a critical step if Sri Lanka is to meet its state production targets.
PA is steadfast in its commitment to promoting the revenue share model as a progressive and transformative solution for the plantation sector. PA remains dedicated to ensuring that worker productivity is fairly rewarded, setting the stage for a brighter and more sustainable future for every plantation worker.
Business
Affairs of Sri Lankan Airlines could be turned around using local expertise – former CAA chair
The financial affairs of national carrier Sri Lankan Airlines could be turned around along with the fortunes of Mattala Airport, using local management expertise without divesting these assets, former chairman CAA and veteran travel and tourism expert Upul Dharmadasa said.
“Sri Lanka has experts and knowledgeable persons to develop Sri Lankan Airlines into a viable entity. But when it comes to the debt restructuring process the government should absorb the losses to salvage our national carrier, former chairman Civil Aviation Authority Upul Dharmadasa told The Island Financial Review.
Speaking on Mattala Airport Dharmadasa said that during the Covid 19 pandemic he spearhead the airlines’ operations to bring more than 138,000 Sri Lankans back into the country. “At that time Mattala Airport functioned as a second international airport and it assisted the government in managing Covid patients in a more systematic way, he said.
Dharmadasa added: ‘Further, Mattala Airport’s 11 anniversary falls today. It falls on the government to develop it as the second international airport. It could attract large aircraft.
“We need to deploy proper and qualified persons to streamline the entire process.
“I have been in the airline industry for more than a decade. The number of airline arrivals in the country and departures from it have come down considerably after Covid 19 pandemic.
“In this scenario, Sri Lankan Airlines should focus on launching new flights to US and Canada. Together they account for more than 1.4 million Sri Lankan diaspora members who fly to Sri Lanka.
“Sri Lankan Airlines should resume Rome flights as well, which is a lucrative market. Apart from that Sri Lankan Airlines should focus on new destinations, wherein they could sell tickets and attract huge revenue to the airline.
“The airline should have 25 aircraft to offer uninterrupted services to air travelers but at present it has only 23 aircraft.”
By Hiran H Senewiratne
LOLC Al-Falaah, Sri Lanka’s leading provider of alternate financial solutions, proudly announces the launch of ‘Al-Falaah Wakalah Future-Cash’, a pioneering Shariah-compliant alternative for Factoring, Invoice & Cheques discounting facility, designed to transform business financing. This ground-breaking financial solution empowers businesses to elevate and realize future cash flows in real-time, while maintaining adherence to ethical financial principles. Setting a new benchmark in Sri Lanka’s Islamic financial services sector, this initiative strengthens LOLC Al-Falaah’s commitment to innovation and excellence in the alternate finance arena.
Unlike conventional Factoring, which relies on interest-based returns against receivables, LOLC Al-Falaah’s ‘Wakalah Future-Cash Today’ product is structured under the ‘Wakalah-Bil-Istithmar’ concept, ensuring full compliance with Islamic economic jurisprudence. Through this model, LOLC Al-Falaah provides capital infusion into business operations in exchange for a pre-determined Anticipated Profit Return (APR), eliminating interest-based transactions. Businesses are appointed as agents to deploy these funds within their operations, with surplus earnings allocated as a performance incentive. This structure enhances financial discipline, promotes transparency, and encourages ethical business practices.
The introduction of this pioneering facility is particularly timely as Sri Lanka transitions towards economic recovery and long-term stability. Shiraz Refai, Head of Alternate Financial Services at LOLC Al-Falaah, emphasized the significance of this initiative: “As Sri Lanka embarks on a path of economic resurgence, businesses require the right financial instruments to capitalize on emerging opportunities. As a trailblazer in the alternate financial services sector, LOLC Al-Falaah has identified a critical gap in the bills-discounting and factoring industry. The launch of LOLC Al-Falaah’s ‘Wakalah Future-Cash Today’ product presents a strategic solution that enhances liquidity and working capital efficiencies while adhering to Islamic financial principles.
City Cycle Industries Manufacturing (Pvt) Ltd, a leading provider of sustainable mobility solutions and renowned for its household brand Lumala, has been honored with the Best National Industry Brand award under the Large-Scale Other Industry Sector at the recent National Industry Brand Excellence Awards 2024.
Organized by the Sri Lanka Technical Development Board under the Ministry of Industry and Entrepreneurship Development, the award ceremony was held on 21 February at Eagle Lakeside and saw the participation of distinguished leaders from diverse industry sectors. The vent was graced by Prime Minister Harini Amarasuriya as the Chief Guest.
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