Employees of Michelin Lanka Pvt Ltd, located in the Midigama area of Matara, allege that there are plans to sell the company.
This has raised concerns among employees about job losses, leading to protests.
Workers allege that the company is planning to dismiss them with a minimal severance payment, which they believe is insufficient.
An employee has revealed to the media that after workers were informed about this decision, a newly formed employees’ union has set several demands to the company authorities.
Workers have demanded a fair severance package, but authorities have offered Rs.200,000, (a sum employees consider inadequate) reportedly asking them to provide resignation letters in return.
An employer also states that before the current government took office, Minister Wasantha Samarasinghe had proposed that forming a trade union could help secure workers’ rights. However, the president and secretary of that union are now reportedly in hiding, he employer adds.
Meanwhile, holding a press conference recently, the Inter Company Employees’ Union had revealed that Michelin Lanka Pvt Ltd is in the process of selling the company to the Indian company – CEAT.
According to the union, CEAT has purchased a majority stake in the company.
As part of the deal, it is reported that the Midigama factory of Michelin Lanka Pvt Ltd and part of its operations in Ja-Ela have been transferred to Indian CEAT company.
The Inter Company Employees’ Union had stated there was no issue as a MoU was signed between the two companies to secure workers’ rights. According to the agreement, Michelin Lanka Pvt Ltd had pledged to honor the full service period of affected workers, while CEAT agreed to provide appropriate compensation based on their years of service, the union adds.
Michelin Lanka was previously a part of Camso Loadstar (Private) Ltd, one of the largest suppliers of industrial tyres in the global market.
The situation at Michelin Lanka follows the sudden closure of the NEXT garment factory in the Katunayake Free Trade Zone a few weeks ago, leaving over 1,400 workers jobless.
In a statement, the company cited high production costs as the reason for shutting down operations in Sri Lanka.
Although the Central Bank of Sri Lanka (CBSL) has banned 22 institutions operating illegal pyramid schemes, no legal action has been taken against any of them so far, according to reports.
This was disclosed during a workshop held at the CBSL yesterday (July 08) on the dangers of pyramid schemes.
According to CBSL officials, after initial investigations, the files were handed over to the Criminal Investigation Department (CID) for further inquiry.
The CID’s Financial Crimes Unit has reportedly completed its investigations and submitted findings to the Attorney General’s Department, which is responsible for filing cases.
However, it was noted that not a single case has been filed to date.
The CBSL states that investigations will be continued against companies engaged in these illegal practices and hopes at least one or two such cases would be filed by the end of this year or early next year (2026).
The Ceylon Petroleum Private Bowser Owners’ Association has alleged that fuel distribution operations have been arbitrarily handed over to another party, which could disrupt fuel transportation across the country.
The association’s Treasurer – Jagath Parakrama warned that the move could jeopardize distribution if not reversed immediately, claiming there is an attempt to create a monopoly over fuel transport.
Parakrama noted that bowser owners, numbering around 400–500 in the association, have long handled the transport of fuel from bulk storage depots island-wide.
He alleged that authorities are now trying to award the fuel transportation route from Colombo and Muthurajawela to Kurunegala to a single businessman via a tender process.
He added, “If we don’t transport the fuel, no one else will be able to do so. However, in the last two or three years, this business was about to be handed over to a few large-scale business people. We, as an association, intervened and managed to stop it for a long time. But now, they are trying to hand over this transportation service to their close associates.”
He stressed that fuel transportation should remain a public service, warning that allowing a monopoly could lead to issues similar to those faced by other transport services.
