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Limited fiscal space, growing service demands, etc., undermine institutional reform and economic recovery – Jt. statement
Limited fiscal space, growing service demands, and weak institutional dialogue mechanisms have placed public institutions under significant strain as Sri Lanka continues to navigate a challenging period of institutional reform and economic recovery, UN and Sri Lanka have said in a joint statement.
They have stressed that the public sector remains both a key driver of national progress and the primary interface between citizens and the state.
The joint statement was issued following a high-level panel discussion that brought together government officials, public sector unions, development partners, and civil society actors under the theme “Building Bridges, Delivering Better: Advancing Social Dialogue in the Public Sector.”
The event was held on Monday (23) in Colombo to mark United Nations Public Service Day.
The event, organized by the United Nations in partnership with the Ministry of Public Administration, Provincial Councils and Local Government highlighted the critical role of public service in economic recovery and social cohesion, and the transformative potential of social dialogue to prevent conflict, strengthen institutions, and improve service delivery.
A joint UN initiative titled “Social Dialogue for Peace and Crisis Prevention”, implemented by the International Labour Organization (ILO), the United Nations Population Fund (UNFPA), and the United Nations Educational, Scientific and Cultural Organization (UNESCO), seeks to strengthen inclusive, gender-responsive mechanisms for dialogue and dispute resolution in Sri Lanka’s public sector. The initiative is supported through the UN Sri Lanka SDG Fund, a pooled funding mechanism backed by Canada, the European Union, the United Kingdom, the United States, the UN Peacebuilding Fund, and the Joint SDG Fund.
UN Resident Coordinator in Sri Lanka, Marc-André Franche, opened the discussion by stressing the importance of rebuilding trust through inclusive dialogue: “Social dialogue is not only about minimizing industrial action. It is about building trust. When trust exists, services improve, morale rises, development gains are more sustainable and there is a greater cohesiveness present with society-at large”.
The panel explored how structured mechanisms such as workplace forums, sectoral platforms, and a national Public Sector Dialogue Forum, can provide alternate pathways for dispute prevention and resolution, reduce the risk of industrial action and unrest, improve working conditions, and ensure uninterrupted public service delivery.
Ms. Joni Simpson, ILO Country Director for Sri Lanka and the Maldives, reflected on the broader impact of the initiative: Social Dialogue is at the heart of social justice and decent work. Today we recognize the vital role of public officials in shaping resilient, gender-responsive and inclusive societies and economies. In Sri Lanka social dialogue is not just a principle – it is a tool for building trust, solving challenges and strengthening governance. The ILO stands committed to supporting public institutions, workers and employers as they engage in meaningful social dialogue that contributes to lasting peace and progress.”
Mr. Aloka Bandara, Secretary, Ministry of Public Administration, Provincial Councils and Local Government, stated: “I am happy to see that the culture of social dialogue is gaining deeper roots in Sri Lanka’s public sector. As we have started to work with key public sectors on operationalizing an alternate dispute prevention and resolution mechanism, the spirit of workplace cooperation is already bridging the relationship between management and workers. More efforts need to be dedicated to sustain this mechanism, so that we can continue pushing forward in enhancing public service delivery for all Sri Lankan citizens”.
Mr. Vajira Ellapola, Director General of the Employers’ Federation of Ceylon highlighted that social dialogue is a process where dialogue, consultation, negotiation, or exchange of information between employers, government and workers takes place: “It can relate to socio-economic policy, labour market or workplace related issues. It sets the stage and creates appropriate conditions for matters to be dealt with social partners through dialogue. Social dialogue should be regarded as processes rather than objectives. It represents ways of achieving consensus- driven objectives on labour market and social policy issues”.
The panel discussion also marked an important step in reaffirming and advancing public service as purposeful, professional, and people-centered, highlighting not only the challenges it faces but also the lived realities of public officials and the opportunities for innovation and reform.
News
CEB engineers raise alarm over power sector stability
A senior electrical engineers attached to the Ceylon Electricity Board (CEB) have warned that unresolved structural and policy issues within the power sector could threaten the long-term stability of the national grid, urging authorities to act swiftly to address mounting technical and administrative concerns.
Speaking on condition of anonymity, they said the electricity network was operating under increasing strain due to delayed infrastructure upgrades, financial constraints, and growing demand.
“The national grid is not something that can be managed casually. It requires systematic planning, preventive maintenance, and timely investment. If these are compromised, the risk to system stability increases,” the engineers said.
They noted that several transmission and substation modernisation projects were behind schedule, while ageing thermal plants continued to shoulder a significant portion of the country’s base load demand.
“Engineers are committed to ensuring an uninterrupted supply. But professional expertise must be respected in decision-making. Technical matters cannot be subjected to short-term political considerations,” the engineers added.
Meanwhile, the powerful Ceylon Electricity Board Engineers’ Union (CEBEU) echoed similar concerns, warning that failure to address long standing professional and structural issues could have serious consequences for the power sector.
In a statement, the CEBEU has said that engineers have repeatedly called for reforms that safeguard the integrity of the utility and ensure that operational decisions remain grounded in technical evaluation.
“The electricity sector is a critical national asset. Any attempt to weaken institutional safeguards or bypass professional consultation will directly impact service reliability and long-term sustainability,” the union said.
The CEBEU has stressed the importance of transparent engagement between policymakers and technical personnel, noting that morale among engineers could be affected if their concerns continue to go unheard.
Industry analysts point out that the power sector plays a central role in Sri Lanka’s economic recovery efforts, particularly as the country seeks to expand industrial activity and attract investment. Stability in electricity supply remains a key determinant of business confidence.
The senior engineer stressed d that the objective of raising concerns is not confrontation but preservation of the grid’s integrity.
“Our responsibility is to the public. Electricity powers hospitals, industries, and homes. Safeguarding the system is a national duty,” he said.
With tensions simmering within the sector, stakeholders say meaningful dialogue between authorities, engineers, and trade unions will be crucial in ensuring that Sri Lanka’s power infrastructure remains resilient in the face of growing challenges.
By Ifham Nizam
News
CB identifies 24 pyramid scams in Sri Lanka
The Central Bank (CBSL) yesterday announced that investigations had identified 24 companies and applications operating prohibited pyramid schemes.
In a public notice issued under Section 83C of the Banking Act, No. 30 of 1988 (as amended), the CBSL said the following entities had been “ascertained and determined as prohibited schemes”: Tiens Lanka Health Care (Pvt) Ltd, Best Life International (Pvt) Ltd, Mark–Wo International (Pvt) Ltd, V M L International (Pvt) Ltd, Global Lifestyle Lanka (Pvt) Ltd, Fast3Cycle International (Pvt) Ltd, Sport Chain App / Sport Chain ZS Society Sri Lanka, OnmaxDT, MTFE App / MTFE SL Group / MTFE Success Lanka / MTFE DSCC Group, Fastwin (Pvt) Ltd, Fruugo Online App / Fruugo Online (Pvt) Ltd, Ride to Three Freedom (Pvt) Ltd, Qnet / Questnet, Era Miracle (Pvt) Ltd and Genesis Business School, Ledger Block, Isimaga International (Pvt) Ltd, Beecoin App and Sunbird Foundation, Windex Trading, The Enrich Life (Pvt) Ltd, Smart Win Entrepreneur (Pvt) Ltd, Net Fore International (Pvt) Ltd / Netrrix, Pro Care (Pvt) Ltd and Shade of Procare (Pvt) Ltd, SGO / sgomine.com and I.C.A.N Advertising (Pvt) Ltd and its affiliates icanonlineadvertising.com, bannercuts.com, bannercuts.lk, bannercuts.net and bannercuts.org
The CBSL said pyramid schemes, also referred to as multi-level marketing or direct selling schemes in certain instances, operate as recruitment-based programmes in which members enlist others into an expanding “downline” structure resembling a chain letter.
Under such arrangements, a portion of the fees paid by new recruits is channelled upwards to earlier participants, known as the “upline”, who are fewer in number.
The Central Bank warned that such schemes are inherently unsustainable, with the vast majority of participants at the lower tiers eventually losing their investments, while only a small number of early entrants are able to recover or profit from the funds contributed by subsequent recruits. It noted that when a pyramid scheme collapses, up to 99 per cent of those in the lower levels risk losing their money.
News
Church urges patience, warns against interference with Easter attacks probe
Director of Communications for the Archdiocese of Colombo, Rev. Fr. Cyril Gamini Fernando, yesterday expressed confidence that ongoing investigations into the 2019 Easter Sunday terror attacks would yield meaningful results and urged the public and all stakeholders to exercise patience and allow the probe to proceed independently.
Addressing a media briefing in Colombo yesterday, Fr. Fernando called on all parties to refrain from interfering with the investigations, warning that any attempt to obstruct the process would amount to a grave injustice to the victims.
He said he believed there was credible evidence to warrant the arrest of military intelligence veteran Maj. Gen. (Retd.) Suresh Sallay.
Referring to the coordinated bombings on April 21, 2019, which targeted churches and hotels and claimed nearly 300 lives, Fr. Fernando described the attacks as a “barbaric” act and a “massacre” that killed worshippers attending Easter services as well as individuals from different religious and ethnic communities.
By Norman Palihawadane
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