Sri Lanka Transport Board vs. D.K.G. Karunaratne – CA-WRT-462-23-2024

In the case between the Sri Lanka Transport Board and Mr. D.K.G. Karunaratne (Arbitrator) and Mr. B. Chandrapala Perera, the court addressed the issue of whether the Arbitrator erred in including the special RAT allowance in the calculation of the “last drawn salary” for gratuity and compensation under the Gratuity Act and relevant administrative circulars (P2 and P3). The holding affirmed that the Arbitrator’s calculation was correctly grounded in the law and circulars, and the application challenging the Arbitration Award was dismissed. The decision reaffirmed the principle that statutory benefits such as gratuity and compensation must be computed strictly in line with prescribed circulars and lawful administrative practice. Reliance was placed on established administrative law principle