Seylan Bank PLC v. Hon. Nimal Siripala De Silva & Others – CA WRIT 459/2020-2022

In the case between Seylan Bank PLC (Party A) and the former employees of Seylan Bank, Minister of Labour, and other public officials (Party B), the court addressed the legality of reducing the retirement age from 58 to 55 and the scope of the Arbitrator’s authority in awarding compensation to dismissed employees. It was held that the Arbitrator’s award, favoring the employees and granting compensation, was made without proper regard for the Bank’s financial crisis and went beyond the Arbitrator’s legal remit. The principle reaffirmed is that legitimate expectations of employees do not override the public interest and the institution’s right to restructure in the face of grave financial threats. The decision relied on statutory interpretation of the Industrial Disputes Act and relevant cas