The Government has decided to grant Rs.300 million to the Sri Lanka Rupavahini Corporation (SLRC) and Rs.300 million to the Sri Lanka Broadcasting Corporation (SLBC) for the compensation to reduce the number of employees under a Voluntary Retirement Scheme (VRS) as per the instructions of President and Minister of Finance Ranil Wickremesinghe to streamline the operations of all State media institutions.
The Government through the Ministry of Media will grant the same amount (Rs.300 million) as a special facility for the same purpose to the Associated Newspapers of Ceylon Limited (ANCL), also widely known as Lake House, since the ANCL does not come under the purview of the Treasury and its majority shares are owned by the Public Trustee.
The combined Rs.900 million will be disbursed from the 2023 Budgetary allocation of the Ministry of Media. President Wickremesinghe has taken this decision in accordance with a special request by Minister of Mass Media, Transport and Highways Dr. Bandula Gunawardena who has taken a keen interest in developing State-owned media institutions.
Since the Treasury is not empowered to directly provide the funds to Lake House, the disbursement will be made through the Ministry of Media under which Lake House has been gazetted.
This was decided on at a meeting with the participation of Deputy Treasury Secretary A. K. Seneviratne, Budget Director General Jude Nilakshan, Treasury Operations Director General Dilith Silva and other senior Finance Ministry officials.
It was also decided that the Ministry of Media and Lake House should sign a Memorandum of Understanding (MoU), and that the Ministry of Media should report the progress in this regard to the Ministry of Finance from time to time. The Ministry of Media should report to the Ministry of Finance whether the terms of the MoU are being properly fulfilled by ANCL.
By the end of 2022, Lake House had taken steps to reduce the number of employees (permanent and contract) from 1,200 to 972, and by the end of this year, this number will be reduced to 900.
A VRS was offered last year by the management on generous terms, which was taken up by many permanent staffers. Also, by the end of 2024, it has been agreed to reduce the total number of permanent and contract employees of Lake House to 850.
In the meantime, measures will be taken to implement proper performance measures and take steps to train journalists and other staffers and to develop the institution. The company will also evaluate the current performance levels of the employees during the Annual Performance Review.
It is also stated in the agreement that if Lake House, which had become a profit-making State media organisation since last September, hires more than the stipulated number of employees in the future, the approval of the Cabinet of Ministers must be obtained for same.
The agreement notes that every possible effort should be made to maintain a stable financial position at all times, and to conduct a review of the 61 objectives of the establishment of the company stated under the Articles of Incorporation of the Company, and if amendments are required, the necessary approvals should be obtained and updated accordingly. The ANCL management is required to take all possible steps to develop the company and its products in both, the print and digital domains.
Media Ministry Secretary and Lake House Chairman Anusha Palpita and ANCL Director (Legal) Janaka Ranatunga signed the agreement in the presence of ANCL directors and senior Media Ministry officials.
Media Ministry Secretary and ANCL chairman Anusha Palpita and ANCL Director (Legal) Janaka Ranatunge exchange the documents following the signing of the agreement. ANCL Director (Editorial) Sisira Paranatantrie, General Manager Sumith Kotalawala, Additional General Manager Virajth Bois, ANCL Company Secretary Sudarshi Hewawasam, Media Ministry Additional Secretary Loshani Peiris, Media Ministry Additional Secretary E.M.S.B. Jayasundara, Legal Officer Yureka Welaratne and Planning Director W.P. Sewwandi were also present. (Pix by Rukmal Gamage)