Bid to put Salu Sala back in business

Irangika Range

RESTRUCTURING: Salu Sala, facing a crisis as a result of high wastage, corruption and inefficiency is to be revived by the Ministry of Textile Development.

“The Ministry is in the process of the implementing speedy and intensive development policies and programmes for its revival,” Minister Jayatissa Ranaweera said.

Ranaweera said when the Ministry took over Salu Sala five months ago, it was on the verge of closure which was inevitable due to mismanagement.

He said the Ministry had to face many difficulties to lever up the organisation back to normal.

“We were able to increase its monthly turnover from Rs.5.8 million to Rs.9.9 million within five months with the continued purchasing of fabrics and readymade garments to Salu Sala and by conducting an accurate and efficient selling process that attracted more customers,” Ranaweera said.

“When the Ministry took over Salu Sala, about 20 Salu Sala showrooms were defunct due to the severe shortage of fabrics. Its total outstanding debit was recorded at Rs.127 million to pay for clothing and equipment suppliers.

The organisations’ monthly turnover has been very low at Rs. 4 million while the total outstanding amount of ETF was Rs. 2.2 million to be paid to employees, the Minister explained.

All fixed assets have been mortgaged to the banks and the total outstanding debt was Rs.505 million. The court has given an order to confiscate all vehicles, machinery and other assets owned by Salu Sala.

There were 52 court cases against Salu Sala. The total outstanding amount of house rental has increased by Rs. 3 million. Employees’ morale to extend a better service has diminished during the past as well.

Minister Ranaweera said the present administration hopes to revive Salu Sala by implementing development programmes and concrete action.

“While the former authority had paid over Rs. 550,000 monthly to maintain a private security service in the organisation we were able to save over Rs. 500,000 per month by employing manpower within Salu Sala to run this security service,” an official said.

Chairman of Salu Sala Upali Weerasinghe said the present management had built confidence after conducting discussions individually with each clothing and equipment supplier.

“We were able to settle the problem of paying their outstanding debt. They agreed to continue supplies. He said that an appointed committee supervises all purchasing activities and settlement of outstanding dues. Under the new management, Salu Sala has been able to purchase over Rs.60 million worth of clothing and equipment. It implements rules and regulations to stop corruption, and wastage in the institution.

“We take disciplinary action against employees who violate these rules,” Weerasinghe said.

“We have discussed personally with people who had filed action against Salu Sala and were able to settle 14 court cases. This would save more money.”

Salu Sala will also lease its unutilised land and buildings and other equipment under the supervision of the Ministry’s tender board to gain additional income.

It is paying the outstanding ETF dues to its employees which has not been paid for many years by the former administrations. “We have also been able to provide bonus for the last Sinhala New Year festival,” he said.

The Salu Sala has provided fabric to Government servants on credit allowing them to pay them in instalments during the festive season.