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CEB engineers’ union warns of economic fallout from new power sector restructuring

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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



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Govt. confident of 2/3 majority despite NPP split speculation

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Anura / Harini

By Shamindra Ferdinando

The ruling NPP yesterday (21) dismissed claims of a widening rift, within the government, over the proposed 22nd Amendment. Asked whether the NPP was concerned over a section of the Opposition alleging Prime Minister Dr. Harini Amarasuriya and two dozen MPs taking a view contrary to that of the party in this regard, authoritative party sources said some persons were propagating speculation for their own interest.

Declaring that there was absolutely no issue regarding the controversial Amendment, sources emphasised once it was tabled in Parliament, it would be passed with 2/3 majority.

Sources dismissed claims that out of its 159-member parliamentary group a section of NPPers was opposed to the government move. According to an influential Opposition activist, there are 57 JVPers and 66 NPPers in the government group and the rest contested the last parliamentary polls, having aligned with the JVP.

Ministerial sources told The Island that the government was confident of going ahead with the 22nd Amendment and Judicature (Amendment) Bills. Sources said that the NPP was not bothered about the Opposition protests in and outside Parliament.

Speaker Dr. Jagath Wickremaratne is expected to disclose the confidential ruling that he received from the Supreme Court in respect of more than 65 petitions for and against the 22nd Amendment and Judicial Amendment Bills. The enactment of the 22nd Amendment would pave the way for extending the retirement age of Supreme Court judges, from 65 to 67 years, and Court of Appeal judges, from 63 to 65 years.

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Justice Corea appointed Acting President of the Court of Appeal

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Court of Appeal Judge M. Sri Mevan Anthony Edirimannasuriya Corea receives his letter of appointment

President Anura Kumara Dissanayake has appointed Court of Appeal Judge Mayadunna Sri Mevan Anthony Edirimannasuriya Corea as the Acting President of the Court of Appeal.

The appointment has been made as President’s Counsel Nalin Rohantha Abeysuriya, who currently serves as President of the Court of Appeal, will be overseas until the 24th.

Accordingly Justice Mayadunna Corea was sworn in as Acting President of the Court of Appeal before President Anura Kumara Dissanayake at the Presidential secretariat last morning (21).

Secretary to the President Dr Nandika Sanath Kumanayake was also present at the occasion.

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Protest against setting up of cement factory in highly populated area near BIA

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The cement factory premises located in close proximity to a school and the lagoon

… school alleges deception

What began quietly as a single-storey tourist hotel, on the edge of Katunayake-Seeduwa has, five years later, morphed into a looming five-storey cement factory and with it, a storm of fear, anger and unanswered questions.

At a media briefing held on 19 September at St. Thomas International School, Seeduwa, the community finally found its voice. The gathering included priests, school principals, environmental defenders, and parents whose children study within a few hundred metres of the site.

The briefing was led by Rev. Fr. Jude Chrishantha Fernando, Director of National and Archdiocesan Catholic Social Communications, Rev. Fr. Nilantha Heshan, Director of the Archdiocesan Sethsarana Institute, Dinusha Nanayakkara, Convener of the Archdiocesan Committee for the Protection of Muthurajawela, and Attorney-at-Law Ms. Isuri Rodrigo.

Their message was clear: This is not a campaign against development.

“We Are Not Against Cement. We Are Against Deception.”

“Cement is an essential raw material for the country. We have no opposition to any such factory or production plant,” they told the media. “But what we cannot agree to is a project of this magnitude, in this location, without any proper environmental assessment.”

The speakers alleged a textbook case of deception, obtaining approvals for a low-impact tourist hotel, in one of the most densely populated educational zones in the Katunayake-Seeduwa Municipal Council area, and then transforming it into a heavy industrial plant.

“In an area where thousands of schoolchildren study, to show one thing on paper and build another is a highly fraudulent procedure. It is clear that the real environmental damage and the truth have been hidden from the people,” they said.

With the sea and lagoon winds that sweep across Seeduwa, experts fear these fine particles will not stay confined to the factory walls. They will drift across classrooms, homes, and the Katunayake Free Trade Zone, where thousands of workers, representing all 25 districts of Sri Lanka, work every day.

“The risk is not local. It is national. We are talking about a future generation of children with respiratory illnesses, and workers developing chronic breathing disorders,” one speaker warned.

Rev. Fr. Jude Chrishantha Fernando, Director of National & Archdiocesan Catholic Social Communications, responding to journalists

Then there is the proximity that defies logic, just 500 metres from the Bandaranaike International Airport.

The panel presented a scientific concern that has aviation experts worried: a significant drop in air quality around the airport and its runway, and the severe risk to highly sensitive aircraft engines when they ingest air mixed with cement dust. What is at stake, they argued, is not just health but the economy itself.

“When you weigh it deeply, the economic contribution of an international airport is far higher than that of a cement factory. If international airlines start to avoid Katunayake due to safety and air quality concerns, it will be a fatal blow to our country’s economy,” they emphasised.

A few minutes away lies another victim the Negombo Lagoon and the Muthurajawela wetlands, Sri Lanka’s largest and most sensitive coastal ecosystem.

The panel warned that cement dust settling on the mangrove system could degrade water quality, disrupt the delicate salinity balance, and directly interfere with fish breeding grounds. For the fishing communities of Negombo, whose lives depend on the lagoon, this is an existential threat.

“The lagoon is a nursery. If its water quality drops, fish will not breed. If fish do not breed, an entire fishing community collapses,” they said.

The speakers alleged that while the developers claim to have approvals from various state institutions, many of the mandatory clearances, particularly comprehensive Environmental Impact Assessments and feasibility reports, have not been obtained.

They stressed they are not calling for an end to investment, but for it to be done right.

“We have no objection to this factory being started in another suitable location where it will not cause these environmental impacts, based on proper feasibility and assessment reports. Stop this construction here and move it,” was the unanimous demand.

The appeal has now been directed again to the President, the government, and all responsible state institutions and officials.

As the briefing ended, one image lingered — a school playground, a lagoon, and a towering cement structure rising between them. It is a scary picture for the people of Seeduwa; they asks a simple question: What price are we willing to pay for development that doesn’t breathe?

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