Business
CEB’s Rs. 8.5 bn VRS package signals deeper power sector restructuring
The National People’s Power (NPP) government’s decision to allocate a massive Rs. 8.5 billion voluntary retirement scheme (VRS) package for nearly 1,900 employees of the Ceylon Electricity Board is being viewed by energy sector analysts as a decisive step towards long-delayed restructuring of Sri Lanka’s loss-making power sector.
Senior officials of the Ministry of Power and Energy said the programme was not merely a compensation exercise, but part of a broader strategy aimed at improving operational efficiency, reducing recurrent expenditure and preparing the electricity sector for a more commercially viable future.
Under the scheme, 1,898 employees opting for voluntary retirement would receive compensation amounting to Rs. 8.5 billion, making it one of the largest VRS payouts in the recent history of Sri Lanka’s state utilities.
Power and Energy Ministry officials said the move had become necessary as the government accelerated reforms linked to the restructuring of the electricity sector amid continuing financial pressures on the CEB.
“The electricity sector cannot continue to operate under outdated administrative and operational structures,” a senior ministry official told The Island Financial Review. “The objective is to create a leaner, more efficient and financially sustainable institution capable of meeting future energy demands while reducing the burden on public finances.”
Officials pointed out that recurrent expenditure, particularly salary-related costs, had placed significant pressure on the utility over the years, especially during periods when expensive thermal and diesel generation had to be relied upon.
The VRS programme, themed “A Dignified Service – A Secure Conclusion,” took place formally on May 15 at the EDL D4 Auditorium in Dehiwala under the patronage of Power and Energy Minister Anura Karunathilaka and Deputy Minister Arkam Ilyas.
Energy Ministry sources said the restructuring process was also expected to improve investor confidence in Sri Lanka’s energy sector, particularly as the country seeks greater private sector participation in renewable energy development and future grid modernisation projects.
Officials stressed that the reforms were being carried out carefully to avoid disruption to electricity supply and technical operations. “The intention is not to weaken the institution but to modernise it,” another senior official said.
The government has repeatedly argued that Sri Lanka’s power sector must transition towards lower-cost generation sources, particularly hydro, solar, wind and liquefied natural gas, while reducing dependence on costly emergency thermal power purchases.
Industry observers noted that workforce rationalisation had long been considered politically sensitive, with successive governments reluctant to undertake major reforms within the CEB due to strong trade union resistance.
However, ministry officials maintained that the latest initiative demonstrated the government’s determination to proceed with restructuring while offering what they described as “fair and respectful compensation” to employees leaving the service.
The development comes at a time when Sri Lanka is attempting to stabilise state-owned enterprises under broader economic recovery measures and fiscal consolidation efforts.
Energy economists say that if managed effectively, the reforms could eventually reduce operational inefficiencies, improve cost recovery mechanisms and ease pressure on electricity tariffs in the medium term.
Officials further indicated that future reforms would focus on transmission efficiency, reduction of system losses and accelerated integration of renewable energy into the national grid.
By Ifham Nizam
Business
Indian business leader urges SL entrepreneurs to tap into India’s rapidly expanding consumer market
By Sanath Nanayakkare
Speaking at the Sri Lanka Economic and Investment Summit 2026, T. Krishnakumar, Chief Executive Officer of Reliance Consumer Products Ltd (RCPL), emphasised that local enterprises can unlock substantial economic benefits by strategically aligning with India’s booming consumer base.
Addressing business leaders and policymakers at the Shangri-La Hotel in Colombo, Krishnakumar highlighted that geographical proximity and rich cultural ties provide a natural foundation for deeper commercial collaboration.
He noted that instead of viewing bilateral trade narrowly, regional partnerships should act as conduits to build robust, scalable enterprises capable of plugging into wide-reaching regional value chains.
“For Sri Lankan exporters dealing in traditional staples as well as value-added goods, accessing India’s rising middle class presents a phenomenal growth window,” he said.
Drawing insights from Reliance Consumer Products’ rapid expansion – which scaled efficiently to thousands of employees and multi-billion-dollar metrics – Krishnakumar stressed that modern corporate success relies on disciplined execution, localised consumer understanding, and smart technology integration.
Furthermore, he underscored that while rapid growth is critical, businesses must consistently anchor their models in affordability and consumer trust.
Concluding his address at the summit, the RCPL chief noted that pairing regional trade integration with resilient business practices and predictable regulatory frameworks will be vital as Sri Lanka transitions firmly toward accelerated economic development.
Addressing the Summit during a subsequent fireside chat, President Anura Kumara Dissanayake underscored that a core concern currently being targeted by the government is developing a critical mass of local entrepreneurs equipped to engage with international enterprise counterparts.
Business
SriLankan Airlines wins prestigious SATA 2026 Visitors’ Choice Award for Leading International Airline
SriLankan Airlines has once again been honoured with the prestigious Visitors’ Choice Award for Leading International Airline at the South Asian Travel Awards (SATA) 2026, reaffirming its continued recognition in the regional travel and tourism industry. The airline, which has received this award in previous years, was the only international airline to be recognised in this category at this year’s event. The 10th anniversary edition of the awards ceremony was held earlier this month at Hotel Barcelo Nasandhura in Male, Maldives.
Recognised as one of the key events on the Maldivian tourism and travel industry calendar, SATA celebrated its 10th anniversary on a grand scale, bringing together prominent industry stakeholders, including Government Ministers, distinguished dignitaries, diplomats and senior representatives from leading airlines and their respective head offices.
Commenting on the achievement, Dimuthu Tennakoon, Head of Commercial, SriLankan Airlines, stated, “We are honoured to receive this recognition at the South Asian Travel Awards 2026. Being named the Leading International Airline in the Visitors’ Choice Awards once again is a meaningful acknowledgement of our commitment to serving our passengers and strengthening our presence in the region. This award inspires us to continue enhancing the travel experience we offer and to build stronger connections with the markets and communities we serve.”
Complementing its commitment to service excellence, SriLankan Airlines offers an extensive flight network with convenient connections to destinations across the globe. In South Asia, the airline operates nearly 130 flights each week to 15 destinations across India, Pakistan, the Maldives, Nepal, and Bangladesh. With schedules thoughtfully designed to suit the needs of travellers, SriLankan Airlines provides seamless connectivity for those visiting Colombo for business or leisure, as well as passengers travelling onwards to destinations worldwide.
Business
JXG enters LMD’s Most Respected Entities in Sri Lanka 2026 for the first time, securing a place among the first 50
JXG (Janashakthi Group), Sri Lanka’s leading financial conglomerate, has been ranked 44th in LMD’s Most Respected Entities in Sri Lanka 2026, marking the Group’s first appearance in the prestigious listing. The recognition places JXG among Sri Lanka’s most respected companies and marks an important milestone in the Group’s master-brand journey.
As the holding company, JXG was also recognised across key attributes including Aspirational Workplace, Business Expansion, Business Innovation, Corporate Culture, Corporate Dynamism, Crisis Management, Employee Wellbeing, Honesty and Integrity, and Leadership Profile. The recognition reflects the growing strength of the JXG brand and the collective contribution of its businesses and people in building trust and confidence among its stakeholders.
JXG’s subsidiaries, including Janashakthi Life and First Capital, have also been recognised in the main table of LMD’s Most Respected Entities 2026 rankings, while Janashakthi Finance has been recognised under the Business Expansion attribute, reflecting the strength of the Group’s individual businesses alongside its growing master brand.
Conceptualised and commissioned by LMD and conducted by PepperCube Research Consultants, the Most Respected Entities special edition recognises companies based on an independent survey of Sri Lanka’s business community.
Commenting on the recognition, Gamika de Silva, Group Chief Marketing Officer at JXG, said, “This is a proud moment for all of us at JXG. We set out to build a Group brand that is not just seen but lived by our people and reflected in everything we do. Ultimately, the true testament to any brand lies in its people, and the credit for this recognition goes to everyone across JXG who brings our values to life every day. This recognition is an encouraging milestone for us, while also reminding us to keep raising the bar and earning the respect of our stakeholders through what we do.”
JXG’s approach to building trust is anchored in its core values of Integrity, Collaboration, Respect, Performance Driven and Innovation. These values guide how its businesses operate, how its people engage with one another and how the Group serves its customers and wider stakeholders.
As JXG continues to expand its businesses, the Group remains focused on strengthening its market presence, creating long-term value and contributing to the growth of Sri Lanka’s financial services sector, guided by its purpose, Breaking Barriers, Forging Futures.
-
News6 days agoSri Lanka escalates anti-graft drive with Shiranthi’s jailing
-
News7 days agoNPP govt. reminded of its responsibilities as US warship leaves Colombo
-
Latest News7 days agoFarhan, Sadaqat help Pakistan ace 183 chase to go 1-0 up
-
Latest News5 days agoFarhan and Sadaqat help Pakistan seal series in style
-
News6 days agoIranian ships stranded, Lanka fears US sanctions
-
Latest News3 days agoNissanka’s return headlines Sri Lanka’s Test squad against Pakistan
-
News7 days agoInterdicted top House official Kularatne receives special recognition in Mexican Parliament
-
Features5 days agoIntake 16: 45 years of duty and honour
