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Construction industry warns significant electricity price hike will undermine everything
The tariff hike demanded by the Ceylon Electricity Board (CEB) will destroy what remains of the construction industry, Supun Abeysekara, secretary of the National Construction Workers Union (NCWU) told journalists in Colombo on Wednesday.
Addressing a press conference in Colombo, he said that around 700,000 construction workers have lost their jobs in the last two years. However, following the drop in interest rates, there is some activity in the industry. “People have commenced minor constructions and some jobs have returned.
However, the tariff hike requested by the CEB will destroy any chance of recovery for the construction industry. We operate a lot of machines using electricity and in recent times, the price of electricity went up twice. The price dropped again in June 2023 and the price drop helped reduce costs,” he said.
Abeysekara said that there is speculation that the CEB wants the tariff to rise by over 20 percent. If the Public Utilities Commission approves this proposal, the construction industry will be in crisis, he said.
“The government initially said that tariffs will only be changed twice a year. In 2023, this has already happened. People have asked contractors for price estimates and these have been given because prices have stabilized somewhat. However, if the electricity tariff is increased, all these cost estimates will have to be changed. There needs to be some price stability for economic activity,” he said.
Abeysekara said that in 2022 most firms laid off contract-based employees to scale down operations due to the government abandoning large scale projects. However, there was hope for a revival in the last three months of the year as there had been some investments into construction in the tourism sector, he said.
“The State Minister of Highways recently announced that they will recommence some road development activities. So, the industry was gearing up for a revival. However, a significant electricity tariff hike can undermine everything,” he said. (RK)
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AKD warns of far reaching economic consequences of Middle East war
President Anura Kumara Dissanayake yesterday called for an immediate and peaceful resolution of the escalating Middle East conflict, warning that the crisis could have far-reaching repercussions on the global economy, including Sri Lanka.
Addressing Parliament, the President stressed that no military conflict benefited humanity, particularly at a time when destructive military technologies were rapidly advancing.
“Any military conflict does not create a favourable situation for any group of people,” he said, urging all parties to make urgent commitments towards peace. “As Sri Lanka, our position is that all parties involved in this war must, as soon as possible, take steps toward a peaceful world.”
He cautioned that Sri Lanka could not remain insulated from the fallout from the conflict, noting that disruptions to global oil and gas supplies, threats to migrant workers in the Middle East, and potential shocks to tourism, remittances, shipping and aviation were real concerns.
A national programme was being formulated to mitigate the impact, he said, adding that its success would hinge on broader international efforts to restore stability, the President said.
Acknowledging public anxiety shaped by past economic hardships, President Dissanayake said social stability could not be ensured through rhetoric alone but required tangible guarantees that citizens would not face another crisis.
While noting that the government had successfully navigated multiple challenges since assuming office, he described the Middle East situation as distinct due to the uncertainty surrounding its duration and outcome.
The government, he said, was closely monitoring developments. The Central Bank had conducted a review with a report on the likely economic impact expected shortly. The Ministry of Finance is also preparing an assessment of the potential effects on public life, alongside measures to ensure the uninterrupted provision of essential services locally and for Sri Lankans overseas.
“The primary responsibility for finding a path out of the crisis rests with the Government,” he said, calling on Parliament and the public to collectively confront the challenge under a unified national plan.
Providing a detailed account of the country’s energy reserves, the President said storage capacity rather than supply remained the key constraint. Excluding the Indian Oil Corporation tanks in Trincomalee, total storage capacity at Kolonnawa and Muthurajawela stands at approximately 150,000 metric tons.
Diesel stocks were currently sufficient for 33 days, with refining contributing around 1,800 metric tons daily. Petrol reserves will last 27 days, with a 35,000 metric ton shipment due on March 7 or 8 expected to extend availability to around 40 days.
Aviation fuel stocks are adequate for 49 days, supported by both daily refining and imports. Scheduled shipments include vessels from RM Parks on March 14, Sinopec on March 17, IOC on March 21 and the Ceylon Petroleum Corporation on March 28.
Crude oil supplies were sufficient to operate the refinery for 26 days, with an additional shipment expected to extend operations by a further 18 days, the President said.
“Because of this, there is no crisis regarding oil,” the President assured Parliament.
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