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by CHAMIKARA WEERASINGHE

The Rubber Research Institute of Sri Lanka has run into a financial crisis. The Treasury's failure to allocate a full amount of a grant promised by it for recurrent expenditure of the activities in the Rubber Research Institute (RRI) is said to have given rise to the situation.

RRI officials said that they had halted most of their research operations and services to rubber smallholders compelled by the institute's poor financial disposition. Also the RRI has so far not credited EPF, in respect of its employees for March, this year, RRI Trade Union sources said.

A senior RRI official explaining the situation told the Sunday Observer that the Treasury had promised them a grant of Rs. 81.5 million for the financial year 2002, it had given only 71.5 million to the institute. "Hence, the deficit of Rs. 10 million for RRI's research, development and maintenance work were met by the authorities, with out crediting EPF deductions of the employees," he said.

RRI Director L. M. K. Tillekeratne in a letter addressed to Minister of Plantation and Industries had said: "The treasury allocation for the recurrent expenditure for the year 2003 is 73.5 million. Hence the monthly allocation is Rs. 6.09 million. If steps are not taken to increase this monthly allocation up to Rs. 7.5 million, the unhealthy situation of the RRI will continue in the year 2003 paralysing the rubber industry of the country."

Meanwhile officials of Rubber Research Officers Union blames that the RRI is spending more on salaries than on research and field work. They said that expenditure on salaries has gone up from Rs. 40.42 million in 1999 to 61.42 million in 2003.

"51.4 per cent of the total funds allocated for RRI , activities was spent research and field work in 1999, but it has dropped drastically to 15.9 per cent in 2003," they pointed out.

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