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Mitsubishi to end operations in Sri Lanka after six decades!

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Mitsubishi Corporation, one of the leading business enterprises of Japan, has decided to end its operations in Sri Lanka next month.

Among reasons to close the office are Sri Lanka’s default of external debt, the cancellation of several Japanese project proposals including the light rail project, the bio gas project and adverse international ratings and economic outlook.

Mitsubishi played a significant role in the bilateral relationship between Japan and Sri Lanka while contributing to the business of many Sri Lankan companies.

The decision to end operations in Colombo by March 31 had been a shocking news to the private sector while local and foreign companies have said that Sri Lanka will suffer a major setback due to this decision.

Japan is Sri Lanka’s largest lender and Sri Lanka owed Japan USD 2.46 billion as of September last year.

Sources said that the Sri Lanka office was one of the first offices Mitsubishi opened overseas.

Mitsubishi was a key operating partner in several projects funded by the Japan International Cooperation Agency (JICA).

Although the Colombo Mitsubishi office has only a staff of 20, the company’s business and projects have provided livelihood to thousands of Sri Lankans.

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China Pledges Full Support for Sri Lanka’s Debt Restructuring

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State Minister of Finance Shehan Semasinghe has met with the Chinese Vice Minister of Finance Liao Min.

This meeting was held on the sidelines of the ADB annual meeting in Georgia.

Minister Semasinghe said on X ”at this discussion China assured its fullest support and cooperation to conclude the debt restructuring process in Sri Lanka.”

Furthermore, he said that China reaffirmed steadfast support to Sri Lanka on all fronts.(news first.lk)

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Sri Lanka slips down Press Freedom Index

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Reporters Without Borders released the 2024 World Press Freedom Index on Friday (03).

According to RFS, Sri Lanka has slipped to the 150th position in the index, from 135th position last year.

Click here to read the RSF Sri Lanka Fact File

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Companies should be ashamed of not giving workers a raise – Vadivel Suresh

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Mr. Vadivel Suresh, General Secretary of the Lanka Jathika Estate Workers’ Union, emphasized that both the Government and the Plantation Employers’ Association bear the responsibility of providing wage increases to plantation workers. These workers, who play a pivotal role in sustaining the esteemed reputation of ‘Ceylon Tea’, contribute significantly to the national economy of Sri Lanka.

MP Vadivel Suresh, made this statement during his participation in today’s (03) news conference at the Presidential Media Centre (PMC), under the theme ‘Collective path to a Stable Country’.

The Member of Parliament noted that plantation companies, benefiting significantly from the fluctuating dollar value, ought to feel ashamed for not providing their workers with a salary raise. He emphasized that the salary increase outlined in the gazette notice issued by the Labour Commissioner General for plantation workers should be implemented.

MP Vadivel Suresh further commented:

“We express gratitude to the President and the government for raising the salary of plantation workers to LKR. 1700. However, the Plantation Employers’ Association is contesting this decision.

The estate companies that profited greatly from the dollar’s value should be ashamed of themselves for not giving their workers a raise. Expressing opposition to the decision to increase wages for their workers, who contribute significantly to strengthening the national economy by upholding the reputation of Ceylon Tea, is regrettable. The decision to raise estate workers’ wages was not made hastily; rather, it followed extensive negotiations over the course of a year involving the Department of Labour, trade unions, and relevant stakeholders.

Employers’ unions persistently refrained from engaging in wage-fixing negotiations. Similarly, they remained silent when a salary increase of LKR 1000 was requested. However, the Labour Commissioner General, utilizing his authority, lawfully issued a gazette notice for a salary hike of LKR 1700. It is unjust for estate companies to procrastinate without providing relief to the workforce amidst fluctuations in the dollar’s value.

Both the government and the plantation Employers’ Association bear responsibility in this matter. Consequently, companies cannot contravene government decisions. Estate companies claim they are in dialogue with the high-level committee for the ultimate verdict. However, all 22 estate companies are owned by five individuals. These owners are involved not only in tea plantations but also in sectors such as tourism, small-scale manufacturing, agriculture, and gems. Additionally, plantation workers and trade unions must unite in support of this wage increase.

(President’s Media Division)

Related News :

Planters’ Association clarifies on daily wage increase

Gazette issued to up estate workers’ daily wage

Unable to increase daily wage – Plantation owners

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