Massive loss-incurring Sri Lanka Railway Department is to be transformed to a semi government institution with the aim of making it a self financing viable entity, Transport Ministry sources confirmed. This suggestion was made by the cabinet sub committee headed by Minister Dr. Sarath Amunugama appointed to look into the possibility of increasing the salaries [...]

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Sri Lanka Railways to be made a semi-government institution

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Massive loss-incurring Sri Lanka Railway Department is to be transformed to a semi government institution with the aim of making it a self financing viable entity, Transport Ministry sources confirmed.

This suggestion was made by the cabinet sub committee headed by Minister Dr. Sarath Amunugama appointed to look into the possibility of increasing the salaries of railway workers with the consent of the administrative committee and the National Salaries Commission which assisted the sub committee towards this end.

Issuing a statement, the All Ceylon Railway Trade Union says it is unbecoming for the cabinet sub committee appointed to look into salary anomalies of workers to make such a proposal.

A cabinet paper has been prepared to seek cabinet approval for making the Railway Department into a semi government institution governed by a board of management.

The cabinet sub committee appointed to revise salaries of railway workers has no mandate to make a proposal to the government to ether restructure or transform the department, All-Ceylon Railway Trade Union General Secretary S.P. Withanage said.

Railway workers will resort to stern trade union action if the government sticks to this proposal, he warned.

Sri Lanka Railways has incurred a loss of Rs.7.6 billion last year, Central Bank data showed.

The operating loss of Rs.7.6 billion exceeded total revenue of Rs. 6.4 billion, which fell 2.2 per cent in 2017 compared to 2016 data.

Revenues had fallen as a result of two strikes; the Central Bank sources said adding that operating expenditure had risen 5.1 per cent to Rs. 14.1 billion in 2017.

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