Cabinet DECISIONS

Mahiyanganaya Sacred City Re-development Plan Implementation

On a proposal made by Construction, Engineering Services, Housing and Common Amenities Minister Wimal Weerawansa, Cabinet approved to implement the priority proposals of the Mahiyanganaya Sacred City re-Development Plan which has already been formulated in keeping with the Sambuddhathwa Jayanthi Ceremony to be held from 2011-2012.

Purchasing Paddy Stocks for Maha Season

Harvesting in the Maha Season 2010/2011 in the Kilinochchi and Kurunegala Districts and in the Eastern Province is to commence within the next few weeks and on a proposal made by Co-operatives and Internal Trade Minister Johnston Fernando the Cabinet approved for the purchase of 200,000 MT of paddy by the Paddy Marketing Board at the rate of Rs 30/- per kilo of Samba and Rs 28/- per kilo of Nadu.

The District Secretaries will be associated in the process and funds required for the purchase of paddy by the PMB will be made available in the form of pledged loans by the State Banks.

Providing Relief on Cultivation Loans by Flood Affected Farmers

The Cabinet approved to provide various assistance to this category of farmers, including following: seed paddy up to a maximum of 01 ha free of charge, to farmers whose crops were totally damaged; seeds for other field crops up to an extent of 0.2 ha free of charge to farmers whose crops were damaged; and provision of financial assistance at the rate of Rs 4,OOO/- per 0.4 ha through the Ministry of Economic Development, for re-cultivation purposes.

The cost of these assistance has to be met within the financial allocation of Rs 33 billion approved by the Cabinet on 09.02.2011, on the basis of a Cabinet Paper on "Impact of recent Flood - A Framework for relief and recovery program for the Flood Affected Districts".

Improvement of Forecasting Capabilities of the Department of Meteorology

On a proposal made by Disaster Management Minister Mahinda Amaraweera, the Cabinet approved for the improvement of capabilities of the Department of Meteorology through a feasibility study and a technical assistance program with foreign funds to be negotiated by the Department of External Resources.

Integrated Landslide Mitigation Project

On a proposal made by Disaster Management Minister Mahinda Amaraweera, the Cabinet approved in principle for the project proposal for Integrated Landslide Mitigation Project.

Nugegoda to Homagama Section of the Colombo-Ratnapura - Wellawaya-Batticaloa Road upgrading

The Government has received a loan of US $ 8 million from the OPEC Fund for International Development to finance a portion of highway upgrading component of the National Highways Sector Project funded by the Asian Development Bank.

A part of the loan will be utilized for the rehabilitation and upgrading of the Nugegoda to Homagama (14.1 Km). Section of the Colombo-Ratnapura-Wellawaya-Batticaloa Road (A4 Road).

On a proposal made by the President, the Cabinet approved to award the contract to the lowest evaluated substantially responsive bidder.

Tender for Supply, Installation and Commissioning of Aeronautical High Frequency Transmitters at Ratmalana Airport

Under this project it is expected to replace three of the 24 year old transmitters to enhance performance and reliability of the high frequency communication between ground and aircraft within Colombo flight indication region.

Contributory Pension Funds Establishment

On a proposal made by the President, in keeping with the Budget proposals 2011, the Cabinet approved to set up three separate Contributory Pension Funds to ensure the well-being of the people who reach non-working age, to be implemented on 01st May 2011.

They are as follows:

Employees' Pension Benefits Fund

Foreign Employment Pension Benefits Fund

Self-Employment Pension Benefits Fund

Employees' Pension Benefits Fund -

This will apply to any employment not covered by the Government Pension Minutes.

The employer's contribution will be 2 percent of the Gross Monthly Salary of the employee and the Employee's contribution will also be 2 percent of his Gross Monthly Salary.

Contributions have to be made for a minimum period of ten years for a pension to be paid at the age of 60 years.

Those with less years of service at the time of implementation, could make payments to cover the balance period.

Further provisions will be provided in the Act to cover the interest of Bank Employees who have been deprived of their pension rights around 1996, consequent to the State Banks being restructured. In such instances, the Employer's contribution will be 5 percent of the Gross Monthly Salary of the employee and the Employee's contribution will also be 5 percent of his Gross Monthly Salary.

The minimum pension for a period of ten (10) years service will be 25 percent of the Average Salary of the last ten (10) year period prior to reaching 60 years of age. All claims to pensions will be determined by the Labour Commissioner and any aggrieved person could make an appeal to the Tribunal of Appeal to be set up for the purpose.

Foreign Employment Pension Benefits Fund - The objective of this Fund is to recognize the significant contribution made by those in foreign employment to the economy of this country. Any Sri Lankan in foreign employment can opt to join this Pension Scheme.

The Government will provide Rs 1000 million by way of an initial capital and all Funds lying to the credit of the Foreign Employment Bureau as at 30.04.2011 will be credited to this Fund.

Each employee has to contribute a minimum amount of Rs 12000/- per annum to this Fund. Such contribution could be made in one or more installments prior to reaching 55 years of age. The pension will be paid at the age of 65 years.

Self-Employment Pension Benefits Fund - the objective of this Fund is to provide a Retirement Benefits Scheme for those in Self-Employment.

The Government will provide Rs l 000 million as an Initial to this Fund. Any persons in Self-Employment can be a member and has to contribute a minimum of Rs 10,000/- per annum to this Fund.

This contribution can be made in one or more installments.

A minimum of ten (10) years contribution has to be made to be paid a pension at the age of 65 years.