News
‘Proposed public sector pay hikes consistent with IMF agenda’
Expert Committee Chairman hopes recommendations will be implemented whoever wins presidential election
By Shamindra Ferdinando
Chairman of the Presidential Expert Committee, Udaya R. Seneviratne, says he hopes that the recommendations regarding public sector salary increase will be implemented regardless of the outcome of the presidential election to be held next week,.
One-time Presidential Secretary Seneviratne emphasised that the final report that included a set of recommendations regarding ways and means to raise state revenue required to meet the new salaries structure had been handed over to President Ranil Wickremesinghe recently.
Seneviratne said so in response to The Island query whether the national economy could bear the additional heavy burden in the wake of Treasury Secretary Mahinda Siriwardana’s recent declaration that the government couldn’t meet the Rs 10,000 public sector salary increase unless VAT (Value Added Tax) was raised from 18% to 20%. Siriwardana is on record as having said that Rs. 140 bn was required annually to increase public sector salaries by Rs. 10,000.
Seneviratne said that his Committee examined all aspects while having consultations with 93 trade unions and representatives of various other organisations and interested parties.
President Wickremesinghe appointed a 10-member committee consisting of members of the public and private sector on June 12 this year. Responding to another query, Seneviratne said that the Treasury was represented by four officials.
Seneviratne said the basic salary increase ranges from 24% to 50%-60% starting from a basic salary of Rs 30,000 with the salary structure revised according to a ratio of 1 to 6.
Having received appointment as Secretary to the President on July 06, 2018 during Maithripala Sirisena’s tenure as the President, Seneviratne retired soon after Gotabaya Rajapaksa was sworn in as the President. Dr. P.B. Jayasundera succeeded Seneviratne.
Asked whether his report covered pensioners, Seneviratne said that issue should be dealt with separately. There are about 750,000 pensioners.
According to Seneviratne, the report dealt with 1.2 to 1.3 mn public sector workers, including the armed forces. “We are talking about approximately two million families depending on the Treasury. Raising the required funds is a daunting task,” Seneviratne conceded.
Seneviratne stressed the responsibility on the part of the government to implement what he called revenue proposals to raise funds needed. The Chairman of the Expert Committee said that the promised salary increment couldn’t be granted unless the revenue proposals were implemented.
Seneviratne said his Committee proposed a new salary structure in line with the agreement with the IMF that the public sector salary Bill should be 3.7% of the GDP (Gross Domestic Product) and capital expenditure 4% of the GDP.
Assuring that the Committee report was not meant to give political advantage to President Wickremesinghe, Seneviratne pointed out that the Parliament adopted the much discussed and debated Economic Transformation Bill (ETB) in July without a vote. Therefore, none of the political parties backing presidential contestants opposed the ETB, Seneviratne said, urging all interested parties to be prepared to proceed with the recommendations. Seneviratne noted that parliamentary polls would follow the presidential election.
“My humble advice is that no one should play politics with this issue. The failure to address grievances of those struggling to make ends meet can be catastrophic in the near future,” Seneviratne said, post-pandemic situation, declaration of bankruptcy and imposition of new tax regime consequent to the agreement with the IMF increased pressure on the people.
Seneviratne said that it would be pertinent to mention that President Wickremesinghe appointed his Committee in the wake of University teachers and others resorting to trade union action to pressure the government to grant them an immediate salary increase. Pointing out that the public sector salary structure was not sufficient at all, even to meet the basic requirement of families, Seneviratne emphasized the urgent need for a consensus on the proposed salary structure or face the consequences.
News
‘IRIS Dena was Indian Navy guest, hit without warning’, Iran warns US of bitter regret
A day after a US submarine sunk an Iranian Navy warship off the coast of Sri Lanka, the Foreign Minister of Iran, Sayed Abbas Araghchi, has warned that the US would “pay bitterly” for targeting a ship in international waters, The Tribune has reported.
Araghchi posted on social media platform X on Thursday saying, “The US has perpetrated an atrocity at sea, 2,000 miles away from Iran’s shores.”
The frigate IRIS Dena, a guest of India’s Navy carrying almost 130 sailors, was struck in international waters without warning, said the Iran Foreign Minister, adding, “Mark my words: The US will come to bitterly regret the precedent it has set.”
US Secretary of War, Pete Hegseth, on Wednesday confirmed that a US submarine fired a torpedo and sank the Iranian Navy vessel IRIS Dena west of Sri Lanka.
In a way, the Iran and US-Israel conflict has reached close to the Indian coast. The strike today at sea was almost 4,000 kms away from Iran, significantly expanding the radius of war. Already, fearing Iranian missile strikes, several US warships have moved eastward towards India.
These ships are in international waters. India has denied that any US Navy assets were using Indian ports. The Iranian ship, hit on Wednesday, was returning after participating in the international fleet review and exercise Milan hosted by India at Visakhapatnam.
The Iranian ship went down with almost 130 sailors on board missing. The Sri Lankan Navy, acting on a distress call, rescued 32 of the Iranian sailors. Hegseth confirmed the act by the US forces, saying the ship was hit in the Indian Ocean, stating, “an Iranian warship that thought it was safe in international waters. .. Instead, it was sunk by a torpedo”.
Hegseth did not name the Iranian ship that was attacked. But earlier, the Sri Lankan Navy reported the distress call from IRIS Dena when it was some 40 kms west of Galle, located on the south-western part of the island country. On February 16, the Iranian ship had sailed into the port of Visakhapatnam, where seventy-four nations participated.
Warships from Australia, Japan, South Korea, Russia, and dozens of others were anchored alongside the now-sunk Iranian vessel. Iran’s Navy Commander, Rear Admiral Shahram Irani, held talks with India’s Chief of Naval Staff on strengthening maritime security cooperation.
The theme was “United through Oceans.” Notably, the US Navy was supposed to send the guided-missile destroyer USS Pinckney to the exercise Milan; however, the ship was diverted to Singapore on February 15. The US did not field its warship in Milan, which had ships from Russia and Iran.
The exercise ended on February 25. Three days later, on February 28, the United States and Israel launched Operation Epic Fury. The IRIS Dena was transiting home. This morning at 5:08 a.m. local time, the IRIS Dena issued a distress call. Sri Lanka’s Foreign Minister, Vijitha Herath, informed parliament that two navy vessels and an aircraft were deployed. Thirty crew members were rescued and admitted to Karapitiya Hospital in Galle.
The Straits Times reported 32 critically wounded survivors. Reuters reported 101 missing and 78 wounded. The Sri Lankan Navy spokesman said the operation was conducted in line with the International Convention on Maritime Search and Rescue.
News
Risk of power cuts due to use of low-quality coal,PUCSL warns
The Public Utilities Commission of Sri Lanka (PUCSL) has warned of a possible risk of power cuts due to the use of inferior quality coal affecting generation capacity at the Lakvijaya Power Plant, according to a recent commission report.
The commission said the risk to the continuous electricity supply was assessed based on the peak demand forecast submitted by the Ceylon Electricity Board (CEB) for 2026.
According to the report, the analysis assumed that hydropower plants could contribute up to 1,300 MW to meet the night peak demand, while the Lakvijaya Power Plant (LVPS) would be able to contribute only up to 690 MW due to a capacity shortfall, assuming a 40 MW generation capacity reduction from each unit.
The PUCSL said the assessment was carried out taking into account the planned maintenance schedule submitted by the CEB. Under the schedule, Unit 1 of the Lakvijaya plant is due to undergo maintenance checks and repairs in June for a period of 25 days, while Unit 2 is scheduled for maintenance in July for another 25 days.
The report also noted that the 270 MW West Coast Power Plant is scheduled to undergo maintenance in April for 10 days, while the 150 MW Kelanitissa Combined Cycle Power Plant (KCCP 2) is expected to undergo maintenance during May, June and July.
Under normal conditions, the report said, there is a potential risk of a generation capacity shortage if electricity demand reaches 3,030 MW in April, 3,070 MW in June and 3,000 MW in July.
The highest recorded night peak demand so far in 2026 was 2,949 MW on February 25.
The PUCSL further warned that if one coal unit or any major power plant becomes unavailable from the existing generation mix, there would be a significant risk of a generation capacity shortage to meet the night peak demand, particularly during April, June and July.
Energy sector analysts said the use of substandard coal could further aggravate operational challenges at the Norochcholai plant, potentially affecting generation efficiency and reliability if corrective measures are not taken promptly.
By Ifham Nizam
News
Sajith demands clear statement from govt. about Iranian vessel sunk close to Galle and another located near Colombo port
Opposition and SJB Leader Sajith Premadasa yesterday demanded a “clear statement from the government regarding this, as well as on the Iranian ship that was attacked near Galle, the number of personnel involved, and other related details,” following the sinking of an Iranian naval vessel in waters off Sri Lanka.
Making a special statement in Parliament, Premadasa said that information had been received about another Iranian vessel in Sri Lanka’s maritime boundary near the Port of Colombo and urged the government to immediately clarify the situation.
Premadasa said the government should also issue a special statement regarding international media reports that the Iranian Navy ship IRIS Dena had been sunk in the Indian Ocean with a torpedo attack by a US submarine.
He said the Sri Lanka Navy had carried out a search and rescue mission following the incident, a move that the Opposition appreciated.
However, the government had not yet informed Parliament of the exact location of the attack, whether the incident occurred in Sri Lankan waters or what diplomatic measures had been taken in response, Premadasa said.
“It has been revealed via international media that the Iranian Navy ship ‘IRIS Dena’ was sunk following an attack by a US submarine in the Indian Ocean,” he said.
The Opposition Leader added that the failure of the government to brief Parliament on an incident of such magnitude was preventing Members of Parliament from properly carrying out their duties.
Premadasa said several international media outlets as well as US Secretary of War Pete Hegseth had confirmed that a torpedo had been launched from a US submarine targeting the Iranian naval vessel, although the government and the Defence Ministry had denied those reports.
“The government must make an official announcement in this regard,” he said.
Premadasa further told Parliament that information had also come to light about another Iranian ship currently within Sri Lankan territorial waters off the Colombo Port, stressing that the government must immediately clarify the matter.
by Saman Indrajith
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