News

Power sector reforms jolted by 40% pay hike demand

Published

7 months ago

2026/03/12

Nusith Kumaratunga

The government’s sweeping electricity sector restructuring programme ran into fresh turbulence yesterday, with authorities warning that meeting a 40 percent salary increase, demanded by striking power sector unions, could push electricity tariffs up by nearly 100 percent.

Chairman of the National Transmission Network Service Provider (NTNSP), Nusith Kumaratunga, issuing the warning at a media briefing, said the additional salary burden would significantly escalate operating costs in the newly formed power sector companies.

According to Kumaratunga, granting the 40 percent salary increase would raise the monthly wage bill by about Rs. 1.8 billion, amounting to nearly Rs. 22 billion annually, placing enormous pressure on the already fragile financial position of the electricity sector.

“If that additional burden is passed on to consumers, electricity tariffs may have to increase by close to 100 percent,” he said.

The briefing was organised by the management of the successor companies created following the restructuring of the Ceylon Electricity Board (CEB).

Kumaratunga said electricity sector trade unions had presented 64 demands in the wake of the restructuring exercise.

“Out of the 64 demands, 62 have already been agreed to,

while the remaining two have been referred to President Anura Kumara Dissanayake for discussion,” he said.

He explained that the majority of the demands related to the continuation of privileges previously enjoyed by employees under the CEB structure.

“During the initial round of discussions itself, the boards of directors agreed to 59 of those demands,” he noted.

Among the concessions already granted was the continuation of bonus payments, similar to those previously paid by the CEB, at least temporarily, until a performance-based incentive system is introduced.

The management had also agreed to grant an allowance of Rs. 11,000, in addition to the existing cost-of-living allowance, bringing the average additional monthly benefit to around Rs. 17,000 per employee, he said.

Kumaratunga stressed that management had approved all demands that could be granted at the ministerial level.

However, he said the proposed 40 percent salary increase would be difficult to justify, particularly at a time when other segments of the public service were not receiving similar benefits.

He also revealed that unions had requested that a 25 percent salary adjustment, granted to senior executives in 2024, be extended to all employees, with retrospective effect from January 1, 2024.

Granting such a request would require amending an existing Cabinet decision, which the boards of directors of the newly established companies do not have the authority to do, Kumaratunga explained.

He pointed out that the newly created electricity sector companies had only commenced operations on Monday, and their work had already been disrupted by the ongoing trade union action.

“It is difficult to understand why the strike continues when the vast majority of demands have already been addressed,” he said.

However, the Ceylon Electricity Board Engineers’ Union clarified that the 40 percent salary increase was not their primary demand.

Union representatives said that the electricity sector employees were originally due for a salary revision in January 2027, but the ongoing restructuring had raised concerns that the scheduled increase might not materialise.

“That is why we requested at least a reasonable percentage increase in order to secure some form of salary revision,” a senior electrical engineer said.

The dispute comes at a critical moment as the government presses ahead with the unbundling of the CEB into separate generation, transmission and distribution entities, a reform programme, officials say, is aimed at improving efficiency and attracting investment to Sri Lanka’s troubled power sector.

However, the restructuring has been strongly opposed by trade unions, which argue that the reforms could undermine employee security and weaken state control over a strategic national utility.

With industrial action continuing and tariff hikes looming as a possibility, the confrontation between the government and electricity sector unions appears set to intensify in the coming days.

By Ifham Nizam

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All set for Colombo rally against govt.’s tax policies

Published

21 hours ago

2026/10/3

Thilina Walpola

People’s Struggle Movement’s National Executive Council members Wasantha Mudalige and Jayantha Amarasinghe speaking to the media yesterday

The Frontline Socialist Party-backed People’s Struggle Movement is set to stage a protest march in Colombo today (03) against what it describes as the growing tax burden on the public and the rising cost of living.

The organisers are due to commence the “Colombo March Against Unjust Taxes” at noon from Campbell Park, Borella. The FSP has also been mobilising support for the protest in Colombo and its suburbs in the run-up to the event.

People’s Struggle Movement National Executive Council member Wasantha Mudalige, speaking at a media briefing in Nugegoda yesterday (02), called on the public to join the protest, saying the movement intended to bring the tax burden faced by ordinary people to the forefront.

Mudalige alleged that successive tax measures had placed an excessive burden on households, particularly through taxes on food and educational items. He also criticised the Government over what he described as the high cost of basic food items and the difficulties faced by parents in meeting their children’s educational expenses.

He accused the Opposition of failing to adequately address the issue, claiming that opposition parties raised such concerns, mainly during election periods.

Mudalige also criticised the Government for what he described as a departure from promises made before the 2024 presidential election regarding taxes on educational equipment.

He questioned the tax burden on food items, citing figures of Rs. 100 per kilogramme on dried sprats, Rs. 310 per kilogramme on chicken and Rs. 11 per egg.

He further alleged that while ordinary people were bearing a heavy tax burden, wealthy groups were receiving tax concessions. He also criticised the Government’s economic programme and its implementation of measures associated with the International Monetary Fund (IMF).

The movement has framed today’s protest as part of a broader campaign over the cost of living and taxation. The People’s Struggle Alliance has separately announced that the Campbell Park demonstration will be the first in a series of public actions, with further protests planned in November.

Mudalige said the movement would continue to take the issue to the streets and urged the public to participate in today’s demonstration.

People’s Struggle Movement National Executive Council member Jayantha Amarasinghe also addressed the press.

News

Yoshitha R money laundering trial postponed

Published

21 hours ago

2026/10/3

Thilina Walpola

The Colombo High Court yesterday postponed the trial in the case filed under the Prevention of Money Laundering Act against Yoshitha Rajapaksa, son of former President Mahinda Rajapaksa.

The case was taken up before Colombo High Court Judge Udesh Ranatunga, with Yoshitha Rajapaksa, who is currently out on bail, appearing in court.

The trial was postponed as the President’s Counsel appearing for the defence was indisposed.

The Attorney General has filed the case against Rajapaksa, alleging that he committed an offence under the Prevention of Money Laundering Act by purchasing five plots of land in Dehiwala and Ratmalana, worth more than Rs. 73 million.

News

Lankan troops test mettle in Russian war games

Published

21 hours ago

2026/10/3

Thilina Walpola

Lankan Army troops participating in Exercise ‘Wolverine Path II–2026’ in the Russian Federation

A contingent of the Sri Lanka Army, comprising 20 officers and 55 other ranks, participated in the combined military exercise ‘Wolverine Path II–2026’, conducted with the Armed Forces of the Russian Federation in Vladivostok, Russia, from September 18 to 25.

According to the Ministry of Defence, the exercise primarily focused on counter-terrorism operations and provided participating troops with training in a challenging combined operational environment.

The exercise included a range of tactical activities, including heli-rappelling, close-quarters battle (CQB), ambush operations, sniper firing, drone operations, buggy training and combat medical support.

The Ministry said the training enabled Sri Lankan troops to further develop their combat skills, tactical coordination and operational readiness.

It also provided an opportunity for the two militaries to exchange professional knowledge, operational experience and tactical expertise. Sri Lankan personnel gained exposure to training methodologies, tactical approaches and operational practices adopted by the Russian Armed Forces, the Ministry said.

The participation also enabled the Sri Lankan contingent to identify lessons from the joint training and share its own experiences with the Russian military.

The Sri Lankan contingent returned to the country following the exercise and arrived at Mattala Rajapaksa International Airport on September 28.

The Ministry said participation in the exercise contributed to enhancing the professional knowledge, tactical awareness and operational preparedness of Army personnel while promoting military-to-military cooperation, mutual understanding and professional relations between Sri Lanka and Russia.