The government has decided to close a state corporation by paying compensation to its employees.

The Cabinet has approved the liquidation of the State Development and Construction Corporation, which was established by a special Act of Parliament in 1971, and the implementation of a voluntary retirement scheme for its employees.

This Cabinet memorandum, submitted by the Minister of Transport, Highways, Ports and Civil Aviation, Vijitha Herath on the 1st, has been approved at the Cabinet meeting held on the 12th of November.

This Cabinet paper has also approved the provision of Rs. 794 million by the Treasury to the employees of the corporation for the voluntary retirement of those employees.

The previous government’s Minister of Transport and Highways, Bandula Gunawardena, had submitted a cabinet paper on 21 August 2024 to merge the State Development and Construction Corporation with the Road Development Authority, and it was approved at the cabinet meeting held on 21 August.

However, due to the dissolution of Parliament on 24 September, the proposal could not be implemented and after the new government came to power, the new minister re-submitted a cabinet paper.