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MAY DAY – 2021

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May Day which fell yesterday is the international day of the working people. The history of May Day goes back to the demand for better working conditions by the burgeoning labour movement in 1886 in the United States. Their agitation in May 1886 led to the massacre of labour activists in the Haymarket incident in Chicago setting off a powerful movement of solidarity throughout the world for an eight hour working day. The struggle epitomized the need to mobilize the working class to fight against inequity and safeguard the rights of the working class.

Sri Lanka is back to old times with the current health crisis being used as a pretext to attack labour’s hard fought rights and privileges. At a time when the world of work is moving towards a shorter working day, we are illegally increasing the hours of work with no additional compensation for the extra hour put in, totally disregarding our own labour laws.

The deteriorating conditions of labour has resulted in a significant number of working people being reduced to poverty with no income security. Sri Lanka has the lowest minimum wage in the region and globally only 16 countries have minimum wages that are less than that of Sri Lanka. Real wages are declining day to day as a consequence of inflationary pressures on the Sri Lankan economy. More and more people are in jobs earning incomes which do not guarantee them a decent life. Wage rates trail behind increases in productivity with whatever gains being shifted in the direction of capital. Sri Lankan labour laws and productivity schemes do not endeavour to secure for workers a share of the gains realized by enhanced worker productivity.

Women face multiple discrimination at work. Weekly hours of work are far above the global average. Arbitrary increases in permissible involuntary overtime to 720 hours per year from a previous 100 hours, extended shifts and night work that impact on their health and well-being, the indiscriminate use of surveillance technology invading their privacy and impinging on their fundamental freedoms are current features of the private sector employment which do not provide women with a conducive environment to work.

The traits of a gig economy (a labour market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs) are widely prevalent in the jobs that are now being created. Precarious work and non-standard forms of labour are on the increase with important consequences for unionization, worker representation and their voice and rights at work. Domestic workers and workers in the informal sector for all practical purposes fall outside the scope of the law. The modest safeguards available for employees in contract employment and precarious work have been whittled down, making it crucial for trade unions to concentrate on ensuring decent work conditions in such jobs through implementing measures that improve wages, expanding and enforcing regulations relating to contract labour, their safety and health, strengthening their social security and welfare and ensuring their voice and rights at work.

Grave issues confront workers and trade unions in the coming period. Sri Lanka is already one of the most liberal in flexibility in employment regulations and job quality according to a 2019 World Bank Report. Any further movement towards dismantling the labour law structure of the country would make our workers even more vulnerable to intensified exploitation by local and international capital.

On May Day 2021, the Ceylon Federation of Labour (CFL) calls upon organized labour to exert pressure on their leaders not to fall prey to the glib talk, specious arguments and machinations of capitalist employers to rob them of their hard won gains and to march forward in principled unity together with other sections of the working class in defence of their rights and privileges.

The uneven impact of the pandemic sweeping across the globe on the working class the promotion of ethno-religious nationalism and increased militarisation resorted to by the regime in power for its own survival make it even more necessary today to focus on class issues in order to defend, consolidate and advance the interests of Sri Lanka’s toiling masses.

 

Sgd. T. M. R. Rasseedin

General Secretary

Ceylon Federation of Labour (CFL)



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Prime Minister inaugurates the 2025 Buddha Rashmi Vesak Zone

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The 2025 Buddha Rashmi Vesak Zone, jointly organized by the Hunupitiya Gangaramaya Temple, the Presidential Secretariat, and the Prime Minister’s Office, was ceremonially inaugurated on May 12 by Prime Minister Dr. Harini Amarasuriya.

During the opening ceremony, the Prime Minister shared the following thoughts:

“The Buddha Rashmi Vesak Festival, held with the collective effort of all communities residing in the city of Colombo, is truly special. The religious harmony that exists within Colombo plays a significant role in making this event successful. Thanks to this harmony, we witness a large number of Dansals and Vesak festivities. These Dansals are organized through the collective efforts of people across the city, who contribute both financially and physically to make them possible.

The efforts made by the Chief Incumbent of the Gangaramaya Temple, Venerable Kirinde Assaji Thero, to nurture Sri Lankan Buddhist enlightenment, Buddhist culture, and national identity not only among local Buddhists community but also to foreign Buddhists community and international visitors, must be sincerely appreciated.

At this moment, I also remember with deep sorrow those who lost their lives in yesterday’s tragic bus accident in the Kotmale area, and I extend heartfelt sympathies to their families. I also wish a speedy recovery to those who were injured.”

The event was attended by Minister of Buddha Sasana, Religious and Cultural Affairs, Hiniduma Sunil Senevi, High Commissioner of India, His Excellency Santosh Jha and other High Commissioners and Ambassadors including Secretary to the Prime Minister, Mr. Pradeep Saputhanthri and a distinguished gathering of guests.

(Prime Minister’s Media Division)

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Expert: Mismanagement of CEB hydro resources increases costly oil-powered electricity generation

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Vidura

The Ceylon Electricity Board (CEB) is in one of the strongest hydro storage positions in recent memory, but it has mismanaged key hydropower complexes, causing an increase in oil-powered electricity generation and and costs.

Energy expert Dr. Vidura Ralapanawe has raised serious concerns over CEB’s operational decisions, particularly the skewed use of the Mahaweli and Laxapana hydropower complexes. “By mid-May, the system had ample storage — about 60% overall — which is actually a very good position to be in just before the South-West monsoon rains,” he said. “But within that headline figure is a huge imbalance. Mahaweli reservoirs are near 75%, while Laxapana is languishing at 30%.”

This lopsided storage has already caused direct operational problems. The Canyon power station, which is fed by the Maussakele Reservoir in the Laxapana complex, has been forced to reduce its output. The 60MW plant is now operating at just 40MW due to limited water availability. Downstream, the 100MW New Laxapana station is similarly constrained.

The Laxapana complex is not just another hydropower asset — it plays a vital role in Colombo’s drinking water supply. It is required to run continuously to maintain flows for water treatment plants. “That means the CEB must generate from Laxapana 24/7, no matter what,” Ralapanawe said. “So how did they allow it to reach such a critically low level, especially when Mahaweli reservoirs are full?”

Ralpanawe said: “Instead of making adjustments to maintain operational flexibility, the CEB appears to have run the Laxapana complex harder than necessary in previous months while underutilising Mahaweli, where Victoria and Randenigala are sitting comfortably. The consequence? More reliance on oil-based thermal generation, even as the country’s dams remain well-stocked.”

“This is not just a technical problem — it’s an economic one,” he stressed. “Oil is expensive. When you underutilise hydropower in a year like this, you’re actively choosing to drive up the cost of generation.”

The apparent lack of coordination between the Mahaweli and Laxapana systems is especially baffling given the CEB’s long-standing familiarity with both. “The CEB has operated these systems for over 40 years. They know the inflows, the rainfall patterns, the seasonal irrigation releases — none of this is new,” Ralapanawe said.

Moreover, the growing integration of AI and data-driven forecasting tools in the global energy sector makes such mismanagement increasingly indefensible. “If, in the age of AI, we’re still hearing that ‘it’s too complex’ to manage these reservoirs in tandem, then something is seriously wrong,” he added.

Dr. Ralapanawe urges the CEB to provide an explanation: “Why was Mahaweli underdispatched when it was full? Why was Laxapana overused to the point that we now can’t get full capacity from critical plants like Canyon and New Laxapana? What is the economic impact of burning more oil than necessary?”

The missteps are already costing the public. Higher generation costs will ultimately be passed on to consumers in the form of increased tariffs, a burden made heavier in an already strained economy,” says Dr. Ralapanawe.

Ironically, 2025 was shaping up to be a strong hydro year, offering a rare opportunity for cost savings and reduced fossil fuel use. Instead, mismanagement has left key reservoirs unbalanced and locked the system into a more expensive operating mode — one that benefits oil suppliers but punishes the average household and industry.

Dr. Ralapanawe’s message is blunt: “This is not just about water and electricity. This is about public accountability and economic responsibility. If the CEB cannot manage two hydro systems properly with decades of data at its fingertips, then it must rethink its leadership and planning structures — or risk repeating the same costly mistakes year after year.”

Our efforts to contact CEB officials for comment were in vain.

By Ifham Nizam

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Million Lankan women workers will lose their jobs if Trump’s 44 % tariff goes into effect

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As many as a million Lankan women workers in key export sectors will lose their jobs and income if the 44 percent tariffs imposed by US President Donald Trump come into force at the end of the 90-day pause, Asia News has reported.

Sri Lanka’s main export industries, such as apparel, tea, gems, rubber and cinnamon, that employ mostly women, will be the most affected by the new tariffs since the US market is one of their most lucrative.

Apparel workers reproach the government for its “lethargic attitude” and failure to consider the concerns of workers and unions, not least because their representatives were not asked to participate in the discussions on tariffs.

The apparel industry accounts for about 40 percent of the country’s total exports, and is crucial for its economy. It also employs mainly women from low-income backgrounds in rural areas, for whom these jobs represent a crucial pathway out of poverty.

Since most apparel workers are also breadwinners, their wages help extended family networks in economically disadvantaged regions.

“The Women’s Centre collaborated with 25 other women’s organisations to carry out our campaign against the US tariffs hindering women workers,” said its Executive Director, Padmini Weerasuriya.

If the tariffs go into effect, “Their take-home pay will decrease significantly,” she added. “As orders dip and approximately six million dependents will also be severely impacted.”

“These women need job security as factories are already discussing about possible layoffs of workers, since demand is likely to drop.”

Compared to India and Bangladesh, she warns, Sri Lankan women face greater competition since “the tariffs imposed on Sri Lanka are higher”. That is why several manufacturers are already moving their operations to Vietnam, Bangladesh and Africa.

If plants shut down, more than 350,000 women working will be impacted. AsiaNews met three of them, 33-year-old Subadra Aponsu, 31-year-old Hemamamli Akaravita and 30-year-old Sandamini Tissera who spoke about their difficulties.

“We are the breadwinners of our families as our parents are elderly and sick. Our siblings are married and they are unable to provide for our parents. During the past several years, we have been working hard and providing for our families. If we lose our jobs, we have no option but to mortgage our homes,” they explained.

“During the economic crisis, we had to sell our paddy fields. Currently, our employers are planning to leave the country. We may lose our jobs shortly. We are unable to find employment elsewhere as almost every apparel manufacturer is planning to sell their business. In our boarding house, several women have already lost their jobs.”

According to economic analysts Sampath Amarasinghe and Niroshini Caldera, “due to the new tariffs, there will be a significant decline in export volumes with a severe erosion of Sri Lankan goods’ competitiveness in US markets.” All this, they warn, could result in “many Sri Lankan products ending up out of reach for US consumers and businesses.”

The greatest risk concerns “price- and cost-sensitive categories like garments, where profit margins are already low and competition from other countries is intense.”

The new tariff will see exports to the United States drop by 20 percent, with an annual loss of about US$ 300 million in foreign currency earnings.

As Sri Lanka’s total exports of goods in 2024 reached US$ 13 billion, the experts conclude, this represents “a major blow to the country’s balance of trade” and “economic growth prospects”.

Meanwhile, several women’s groups started a petition last week in the Katunayake Free Trade Zone (the first and largest of the country’s eight FTZs). – (AsiaNews)

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