News
CEB engineers’ union warns of economic fallout from new power sector restructuring
The Ceylon Electricity Board Engineers’ Union (CEBEU) has issued a stark warning that the government’s sweeping power sector restructuring, under the Sri Lanka Electricity Act No. 36 of 2024, could unleash serious economic and operational risks — destabilising the state utility, burdening consumers, and discouraging investor confidence in the long run.
CEBEU Executive Comittee Member, Eng. Dhanuska Parakramasinghe, told The Island the restructuring effort, presented as a reform to improve efficiency, was being rushed through without transparency, stakeholder engagement, or a clear financial framework.
“This so-called restructuring is being packaged as reform, but it’s essentially a politically driven fragmentation of a strategic national utility,” Parakramasinghe asserted. “The consequences will not only hit employees — they will ripple across the economy, affecting tariffs, investor confidence, and national energy security.”
Under the new law, the CEB is set to be broken into multiple companies handling generation, transmission, and distribution. Parakramasinghe warned that this model, promoted as a solution to debt and inefficiency, mirrors failed experiments elsewhere in the region.
“Splitting the CEB without a proper regulatory and financial backbone is like dividing a heart into pieces and expecting it to beat,” he said. “The proposed entities will lack financial resilience, depend on unsustainable borrowing, and open the door to opportunistic private takeovers.”
The CEBEU argues that the government’s plan ignores the fundamental reality that the CEB, despite its challenges, provides reliable electricity to over 99% of the population — one of the highest coverage rates in South Asia.
Parakramasinghe cautioned that the restructuring would almost certainly lead to higher electricity tariffs for both households and industries, as private companies prioritise profit over affordability.
“When you introduce fragmentation and private interest into essential services, cost efficiency is lost,” he explained. “Consumers will end up paying more for less. This is not just a labour issue — it’s a national cost issue.”
Economists have also raised concerns that unbundling the CEB could deter long-term investors wary of political interference and policy inconsistency. “If the government’s objective is to attract private capital, the path it has chosen is the wrong one,” Parakramasinghe said. “Investors value stability and clarity — not rushed restructuring and regulatory confusion.”
The Union also accused authorities of coercing employees into an unfair Voluntary Retirement Scheme (VRS) designed to weaken the institution. Parakramasinghe described the scheme as “opaque, coercive, and deeply unjust,” alleging that it is being used to purge experienced professionals rather than strengthen the organisation.
“The so-called VRS has no transparency or fair valuation. It’s effectively a soft layoff mechanism to dismantle institutional memory and weaken collective resistance,” he said. “Once that knowledge is lost, rebuilding capacity will take years — something the country can ill afford.”
The CEBEU has already launched a phased industrial action campaign, now entering its second month, and has vowed to escalate if the government fails to respond. Parakramasinghe said engineers have so far maintained service continuity to minimise disruption to the public and the economy, but warned that patience is wearing thin.
“We have repeatedly urged dialogue, but the Ministry and the restructuring secretariat remain unresponsive,” he said. “If this continues, the union will have no choice but to intensify action — responsibly, but firmly.”
The Engineers’ Union emphasised that the real cost of this policy misstep will not be borne by engineers or bureaucrats but by the wider economy. Power supply instability, delayed generation projects, and tariff hikes could undermine industrial competitiveness, particularly in export-driven sectors such as apparel, rubber, and ceramics.
Parakramasinghe stressed that the Union is not opposing reform, but demanding that it be undertaken with proper governance, financial planning, and professional consultation.
“Electricity is not just another commodity. It is the economic bloodstream of the country,” he said. “Reforms must be transparent, economically sound, and rooted in national interest — not driven by short-term political optics.”
He urged the government to revisit the Electricity Act and hold inclusive consultations with engineers, economists, regulators, and the private sector before proceeding.
“The President and the Minister of Power must understand that ill-considered restructuring could push Sri Lanka’s power sector from a technical challenge to an economic crisis,” Parakramasinghe warned. “We are ready to contribute to genuine reform — but not to a process that dismantles what generations of professionals have built.”
A senior CEB official, contacted by The Island, declined to comment.
By Ifham Nizam
Interdicted Deputy Director at the National Hospital, Sri Lanka (NHSL) Dr. Rukshan Bellana yesterday (29) alleged that the powers that be moved against him for seeking the CIABOC (Commission to Investigate Allegations of Bribery or Corruption) investigation into a massive fraud at the NHSL laboratory.
Dr. Bellana said so in response to The Island query regarding the circumstances the Health Ministry interdicted him on 18 December, through a letter, as directed by the Health Committee of the Public Service (PSC) Commission. “That letter has been signed by an Additional Secretary, as Health Secretary Dr. Anil Jasinghe was overseas,” Dr. Bellana said.
Dr. Bellana stated that the government had paid for reagents, contaminated or close to expiry dates, obtained from a leading local medical supplier, since 2022. He emphasised that his complaint to the CIABOC, and subsequent complaint to the Criminal Investigation Department (CID), were entirely based on the issues raised by the National Audit Office (NAO).
Responding to another query, Dr. Bellana said that the public funds, amounting to Rs. 900 mn, had been spent on chemical reagents past expiry dates. Regardless of the intervention made by the NAO, the NHSL continued to procure supplies from the same company, Dr. Bellana said, adding that he had received the unconditional support of the civil society. Among them were Dr. Chamal Sanjeewa, President of Medical and Civil Rights Professional Association of Doctors (MCPA), President of Academy of Health Professionals Ravi Kumudesh, and leader of Mage Rata Sanjaya Mahawatta.
Dr. Bellana said that he had complained about the scam to the CIABOC in June this year.
Dr. Chamal Sanjeewa, who also lodged a complaint with CIABOC, regarding the same matter, is on record as having said in September this year that the reagents had been procured over a three-year period without the proper approval of the Medical Supplies Division of the Ministry. Dr. Sanjeewa has alleged that some of the reagents were either contaminated or close to expiry dates, while contracts had been given to a single company at unapproved prices.
Dr. Bellana said that had there been a proper system for CIABOC and law enforcement authorities to act on findings made by the NAO they wouldn’t have personally intervened in the NHSL laboratory matter. “Parliament should look into this. Did Parliament take up the NHSL laboratory matter at the relevant watchdog committee or at the Sectoral Oversight Committee that handled health?” Dr. Bellana asked.
Asked whether the letter that informed him of his interdiction gave any specific reason for the action taken, Dr. Bellana said the Ministry had found fault with him for speaking to the media. The irate ex-official said that he never hesitated to take a stand against injustice. “When former Health Minister Keheliya Rambukwella was accused of corruption, pertaining to medical procurement, I condemned the Minister. Lambasted those responsible for wrongdoings.”
Dr. Bellana said that the NAO had dealt with mega crime involving the public and private sector. “That is the undeniable truth. Parliament should look into this as public money is its responsibility. Having vowed to stamp out corruption, the NPP was allowing and encouraging those who had been making money at the expense of the sick, Dr. Bellana said.
Dr. Bellana said that as many as 10,000 tests were conducted daily at the NHSL. The racketeers had been active during Aragalaya as the NHSL and the private supplier reached agreement in 2022 and the process continued even after the last presidential election, conducted in September 2024.
Dr. Bellana said that the long delay in finalising the Auditor General’s appointment exposed the government. If those holding high political office were genuinely interested in fighting corruption, they wouldn’t have allowed that Office of AG stay vacant even for a day.
Dr. Bellana noted the tough statements issued by the Bar Association, Transparency International Sri Lanka and the Committee on Public Finance demanding the immediate appointment of AG.
Health Ministry officials were not available for comment.
By Shamindra Ferdinando
BIA unions, including those affiliated to political parties, are demanding bonuses equal to five months’ basic salaries.
A group of workers yesterday (29) protested outside BIA urging the Airport and Aviation Services Sri Lanka (Private) Ltd to increase their bonuses. They claimed that the Chairman of Airport and Aviation Services Sri Lanka (Private) Ltd., Air Vice Marshal (Retd) Harsha Abeywickrama, had assured them that they would be paid bonuses worth five times their basic salaries.
The SriLankan Nidahas Sewaka Sangamaya (SLNSS) of the airport, the Podujana Sewaka Sangamaya, the Pragathishili Sewaka Sangamaya, the Jathika Sevaka Sangamaya, and the SLNSS of SriLankan Airlines joined the protest.
The Sri Lanka Mahaweli Authority has issued an urgent safety warning to residents living along the banks of the Kotmale Oya and the Mahaweli River, as water levels in the Kotmale Reservoir are reaching maximum capacity.
According to a special weather advisory issued by the Department of Meteorology on December 26, 2025, heavy rainfall is expected in the catchment areas over the coming days.
In response, the Mahaweli Authority released a statement on December 27, warning that spill gates may have to be opened to manage the water flow.
Eng. A.M.A.K. Seneviratne, Resident Engineer and Deputy Director of the Kotmale Reservoir, stated that the opening of spill gates would lead to a significant rise in the water levels of both the Kotmale Oya and the Mahaweli River.
Areas on Alert
Residents in the following Divisional Secretariat divisions are urged to remain extra vigilant:
• Nuwara Eliya District: Kotmale West and Kotmale East.
• Kandy District: Udapalatha, Udunuwara, Doluwa, Pasbage Korale, and Ganga Ihala Korale.
Authorities have advised the public in these low-lying and river-adjacent areas to monitor the situation closely and take necessary precautions to ensure their safety and the protection of their property.
By S.K. Samaranayake
Showers expected at times in the Northern, Eastern, Central, North-central and Uva provinces
Dr. Bellana: “I was removed as NHSL Deputy Director for exposing Rs. 900 mn fraud”
BIA unions demand bonuses equal to five months’ basic salaries
People warned of rising water levels at Kotmale reservoir
Lahore Aitchison College students visit Pakistan High Commission, Colombo
GMOA may take up Dr. Bellana’s issue at ex-co
‘Dates have the highest sugar content to fight Coronavirus’
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