|
|
 |
 |
| Sunday, 28 July 2002 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
Uninterrupted power supply essential - IASL Chief The need for power tariff structures and uninterrupted power supplies are essential prerequisites for industrial growth. Chairman of the Industrial Association of Sri Lanka (IASL) Cubby Wijetunga, addressing the 11th Annual General Meeting of the IASL, said the current drought in the South has renewed fears of a recurrence of the power cuts of last year. "Even if the present Government was able to eliminate the supply disruptions temporarily by purchasing emergency power, it has been achieved by raising power tariffs substantially. It is my fervent wish that the Government would expedite decisions on enhancing power production based on the principle of supplying power at the lowest possible cost to the nation," he said. At present, the high electricity tariffs, which are disastrous to industry, have resulted in Sri Lankan manufacturers losing the competitive edge over their competitors, Wijetunga said. He stressed the importance of labour law reforms and said that the Termination of Employment Special Provisions Act was inhibiting industries from restructuring. Cumbersome procedures involved in the restructuring of industrial units and the unavailability of clear norms on the compensation payable compel industries to resort to closure, making all employees redundant, rather than restructure and retain a proportion of the employees. Reports indicate that over 300 factories closed down formally, with intimation to the Ministry placing the actual number of closures at much higher levels, he said. He said the Termination of Employment Act was also inhibiting investments. This piece of legislation, apart from discouraging foreign direct investments, even make local investors think twice about venturing into new projects and expansions. The present labour laws also do not allow productivity-related wage negotiations. When there is ample opportunity to increase productivity, the employees often opt to restrict output to a level pre-set by them, said Wijetunga. The introduction of the one per cent Port Development Levy also inhibited the garment industry which would lose around Rs. 1.2 billion as a result. He proposed the setting up of private pension funds as they would provide a better rate of return and develop capital markets. |
|
News | Business | Features
| Editorial | Security Produced by Lake House |
