Cut trees to pay EPF, ETF dues

Cabinet approves proposal by minister to meet colossal liabilities

The Government will cut down trees in state-owned plantations and sell the timber to pay statutory dues of thousands of employees.

A proposal to this effect has been approved by the Cabinet of Ministers on a recommendation by State Resources and Enterprise Development Minister Dayasritha Tissera

The proceeds are to be utilised to pay overdue EPF (Employees’ Provident Fund), Employees’ Trust Fund (ETF) and gratuity payments to employees in the plantation sector. The minister has been told that proceeds of the sale of timber should be credited to three separate new bank accounts to be opened under the names of the Janatha Estates Development Board, the Sri Lanka State Plantations Corporation and Elkaduwa Plantations Limited. Thereafter priority is to be given to settling the statutory payments to thousands of workers. If funds remain thereafter, the minister has been ad- vised that they should be utilised to settle other outstanding liabilities.

This is the first time trees are being felled from the state plantations sector to raise money to pay statutory dues of workers. The situation has come about since the state enterprises are unable to meet these payments from their own resources due to recurring colossal losses.

The Ministry of State Resources and Enterprise Development has been told to formulate its own replanting programmes using environmentally friendly plants. It has also been told to seek the assistance of the Central Environment Authority, the Department of Forest Conservation, District Secretaries and other relevant state bodies. The ministry will also be required to forward reports on the progress of the tree felling programme every two months.

Minister Tissera claimed earlier that the felling of these trees would not cause environmental damage to the plantations.