How did loss-making SriLankan, CPC pay bonuses? | Daily News

How did loss-making SriLankan, CPC pay bonuses?

President calls for explanation from Chairmen
CPC spends Rs. 1,200 million on bonuses
Each SriLankan employee got Rs.100,000
SriLankan spends Rs.580 million on bonuses
Some big wigs get more than Rs. one million as bonus
Shiromi Abhayasinghe

President Ranil Wickremesinghe has called for explanations from the heads of the Ceylon Petroleum Corporation and SriLankan Airlines regarding the payment of bonuses to employees, despite the Ministry of Finance informing loss-making corporations and boards not to pay bonuses to employees.

The President has called for explanations from the heads of the above two institutions based on a report that they have paid bonuses contrary to government circulars. Ceylon Petroleum Corporation has paid two months’ salaries to its employees and SriLankan Airlines has paid Rs.100,000 each as bonus to employees, according to a report handed over to the President.

Although the Finance Ministry had given this notice through a circular, it is said that the bonuses have been paid by showing that the CPC is making profits due to the increase in fuel prices.

For this purpose they have spent Rs.1200 million. 

 It is also said that in a report which portrayed CPC was making profit, the existing debt of the Corporation had not been included.

Ceylon Petroleum Corporation has 4,200 employees and they have been paid two month’s salary as bonuses. The report also states that since there are officers receiving a monthly salary of over Rs.500,000 among its top officials, bonuses of more than one million rupees have been paid for certain officials.

There are 5,800 employees at SriLankan Airlines and they have been paid Rs.100,000 each while identifying it as the salary for the 13th month. Accordingly, Rs.580 million rupees has been spent for this purpose.

The report given to the President also stated that the payment of bonuses as 13th month salary has been done citing a Supreme Court order. It has been learned that explanations have been sought from these two institutions for paying bonuses in violation of government circulars and the President is slated to take an action based on the relevant replies.

It is said that the President had expressed his concern about this act which is viewed as a further burden on the people from two institutions which has contributed to enhancing the burden on the people with their high debt.

The loss of the Ceylon Petroleum Corporation (CPC) had been Rs 633 billion up to August 2022. The CPC also owes Rs 228 billion to an Indian Credit Line, taken during mid last year.

The National Carrier, SriLankan Airlines, had lost Rs 112.8 billion in the first half of the 2022/2023 financial year. The Finance Ministry, in its Annual Report, stated that the loss (before tax) of SriLankan Airlines for the year 2021 was Rs. 170.8 billion.


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