Features
Wage increase makes mockery of collective bargaining
by J. A. A. S. Ranasinghe
Productivity Specialist and Management Consultant.
This addendum to the topic is based on the incisive analysis of the plantation wages: Collective Bargaining or otherwise by Gotabaya Dasanayaka (GD) in The Island of 01st March 2021. The eminent labour legislation specialist, former Director General of the Employers Federation of Ceylon (EFC) has most undoubtedly hit the nail on the head drawing the attention of the readers to more sensitive aspects revolving round the importance of the time-tested collective bargaining systems prevailed in the determination of wages of the plantation workers for over three decades in particular as well as to the possible economic consequences, the new wage structure gives rise to the survival of the plantation industry in general.
Industrial Dispute Act No 43 of 1950 (ID Act)
The ID Act quite explicitly deals with the functions of the Commissioner of Labour (CL) under part 11 of the Act which says when an industrial dispute arose, it shall be the duty of the CL to refer such disputes for settlement by conciliation or by arbitration or by an Industrial Court including that of a District Court. It should be noted here that neither the Minister in charge of Labour nor the Commissioner of Labour (CL) nor the Deputy Commissioner of Labour (Industrial Relations) nor any other authorized person seems to have the gumption to abide by aforesaid conciliatory methods as envisaged in the ID Act, when the collective bargaining process of the plantation workers came to a deadlock a few weeks ago.
The most sensible course of action what the Minister or the CL should have done was to have recourse the dispute in question to a compulsory arbitration as per the provisions of the ID Act for a just and equitable award as articulated by GD. The reluctance on the part of the Minister to refer this sensitive issue to the compulsory arbitration is a moot point. Probably, he may have thought that the decision of the arbitration would not be favourable to the trade union demands. On the other hand, he may have thought that the reference to the arbitration is a time-consuming affair and the trade unions agitation is too severe to be ignored. However, it is crystal clear that the Minister had totally condemned the gist of the ID Act in toto by referring it to the Wages Board by circumventing all the bottlenecks in the pipeline for the first time in the history by creating a new precedent. It must be stated here that nowhere in the ID Act that an unfettered latitude is granted for the Minister to refer this labour dispute to the Wages Board. It is highly questionable as to why the Regional Plantation Companies did not challenge the Labour Minister’s arbitrary decision by way of a writ before the court and finally bore the brunt of the unconscious increase of the wages, which has far-reaching ramifications over the plantation industry and the smallholder sector.
Wages Board Ordinance (WBO)
Under section 8 of the WBO, the minister is empowered to establish Wages Board (WB) for any trade. It is a tripartite constituency representing the officials of the Labour Department, employers and employees of a particular trade. At present, there are 45 wages boards for different trades including that of plantation, agriculture and manufacturing industries and they receive minimum wages protection under this WBO. As regards the plantation sector, employees of rubber plantations 25 acres and above, coconut plantations 10 acres and above and tea plantations-no limit on acreage, are protected by the WBO. Though WB has been in existence for the last seven decades, the collective bargaining process initiated by the ID Act and the WBO functioned in tandem without interfering in each other’s territory.
As a matter of fact, collective bargaining process is more instrumental among the more organized sector where collective agreements are in force. By and large, the wage structure in the organized sector where collective bargaining operate is far superior to that of the establishments covered by the Wages Board. The minimum wages paid to employees covered by the WBO are conspicuously lower than the wages paid under the collective agreements. The Wages Boards are considered to be subsistence level wages as referred to above and in sectors where the trade unions are virtually non-existent. Hence, it is unprecedented that a matter which is subject to collective agreement was referred to wages board by the Minister of Labour in the annals of the labour movement of this country without realizing the repercussions that could arise. It is true that the plantation workers were covered by a Collective Agreement and periodically it has been renewed after collective bargaining. In a matter covered by Collective Agreement, if any dispute arose, the matter should have been referred to compulsory arbitration under the ID Act. However, in this instance, it is surprising that the issue was referred to the relevant wages board at the instance of the Minister of Labour.

Wage Impact on the industry
Mr. GD in his well-articulated article made a comparison between the wage structure of the different Wages Board in selected trades and the proposed daily minimum wage for the Tea and Rubber Growing and Manufacturing Trades and pointed out the huge disparity, if the proposed daily minimum wage of Rs. 1,000/= is paid across the board. Both the tea and rubber sectors are owned 70% by the smallholders, definitely the proposed increase will have a deleterious impact on the productivity of the tea and rubber sectors and the smallholders can ill-afford to bear the increased wage at this juncture. Right at the moment, a large number of rubber small holders in Kegalle, Kalutara and Ratnapura districts have abandoned their plots in the face of the exsisting wages and the dearth of labour. Right at the moment, Regional Plantation Companies (RPCs) make a desperate attempt to contain the high cost of production and there will be an inevitable impact-detrimental to the well-being of the industry, in the face of the enhanced wages approved by the Wages Board.
GD in his article had incorporated the minimum wages applicable to selected eight trades to pinpoint the irrational disparity of wages and I would go further to highlight the inadvisability of enhancing wages through the wages board mechanism.
The Collective Bargaining process stipulated in the ID Act provided a reasonable effective mechanism to maintain healthy industrial relations and a healthy industrial peace and harmony for the last 30 years. Moreover, the sustainability of the industry and the commercial viability on the basis of labour productivity, profitability and the efficiency of operations were some of the key prime-movers at the collective bargaining table, which both parties took cognizance of seriously. Every Dick, Tom and Harry knew quite well that the government made a solemn pledge at the Presidential Election as well as the last Parliamentary election that the daily wage of the estate workers would be enhanced to Rs. 1,000/= as per the election manifesto (Chapter 10 of the Vistas of Prosperity and Splendour). It is this pledge that the government had to initiate at the last Annual Budget at the instigation of the labour trade unions in the estate sector.
Obviously, there are many obstacles both statutory and bureaucratic in the implementation of this pledge. The Commissioner of Labour (CL) who was well versed in the sustainability of the estate sector and the procedural initiatives involved as per the ID Act and Collective Bargaining Process was seen as a stumbling block and he had to be booted out by installing a provincial bureaucratic who was absolutely unaware of the commercial viability of the plantation sector, which is associated with many operational and financial ills.
It must be stated here in fairness to the former Commissioners of Labour in the calibre of Mr. G.Weerakoon and Mr. Mahinda Madihahewa who had served the Labour Department with distinction adroitly and they did not succumb to the political pressure and had the capacity to appraise both sides when critical labour issues arose in fairness to both parties but they relied heavily on the sustainability of the industry on a more priority basis in solving labour disputes. The Government realized that the collective bargaining process outlined in the ID Act was an impediment to the smooth implementation of the proposed wage structure. So, the government insidiously shifted from the time-tested mechanism of collective bargaining process to Wages Board to expedite the process. According to the grapevine circulating in the Labour Secretariat that three strong party acolytes were brought in as nominated members of the Minister to the Wages Board in order to ensure the easy passage of wage increment of Rs. 1,000/=.
Future Trends of the Labour Movement.
From the pattern of the signals hitherto displayed by the government that came into power in 2019, it appears that every vibrant sector would be confronted with insurmountable labour agitations. Firstly, the industry has been agitating to do away with the obnoxious requirement of paying Rs, 200,000/= in case of terminations under the Employment of Termination Act. The employers pointed out over a decade of time that it was difficult to bring in foreign investment with such a legislation. The government did a U Turn by enhancing the payment of compensation to Rs. 400,000/= instead of scrapping this piece of legislation. Secondly, the amount of workmen compensation in the event of a death of an employee due to a fatal accident was increased almost double, placing more financial burden to the employers at the instigation of the trade unions. The third scenario was the manner in which it deviated from the time-tested collective bargaining mechanism and imposed unbearable financial constraints by way of enhanced wages to the employees of the plantation industry. The industry is unaware of any other ill-logical motives to be moved in the pipe-line against the well-being of the industry in the foreseeable future. What would happen if the rest of the Wages Boards request enhanced wages quoting the unprecedented mechanism adopted by the government and the resultant chaos would be inevitable. Unlike those days, the trade unions have become more aggressive with their political affiliations with the government and the civil society too have extended their support to trade unions to win over their demands, as can be seen from the Colombo Port ECT deal. There is obviously writing on the wall that the country would be inundated with heaps of labour unrest issues with the wrong signals given by the government.
Financial assistance to RPCs
It is factually correct that Regional Plantation Companies (RPCs) and smallholders were resisting the wage increase proposal on the ground that the financial resources do not permit them to incur this heavy expenditure. If this is the truth, nothing but the truth and the whole truth, the government has an inalienable duty to provide some financial assistance to RPCs by resorting to unorthodox avenues to alleviate its financial suffering even on short time basis. In this regard, Dr.Janaka Ratnasiri, a regular writer to The Island newspaper has made a pragmatic proposal in his feature dated 16th February 2021. He contends that export of tea is subject to a CESS levied at Rs. 10/- per Kg which works out to LKR 2.9 billion. Out of this, Rs. One billion is collected as tea promotion levy by Sri Lanka Tea Board from the exporters. Another 1% or 2.4 billion has to be paid to Brokers for conducting the auctions and carrying out quality control checks and certifying on samples received. These brokers comprising 8 Companies deserve it because they ensure that quality tea is exported. After paying taxes, the exporters are still left with a profit marginof about 65 billion annually. Dr. Janaka Ratnasiri argues that would be more prudent to share this profit among this plantation workers. Otherwise, it could be proportionately be distributed among the RPCs so that heavy financial implications arising out of this wage commitment could be mitigated.
Crises in the plantation industry
Consequent to the announcement of the new wage increase given to the plantation employees, there has not been any knee-jerk reaction from the plantation companies for the last one week. Their studious silence will have to be observed with much circumspection. Both the tea and rubber industries are on the verge of collapse owing to heavy financial implications and it is not clear as to how they absorb this unforeseen expenditure. It is certain that the Regional Plantation Companies (RPCs) would continue to incur heavy losses with this wage commitment. It could be reasonably assumed that the production and its quality will be the immediate casualties and this trend, if any, does not auger well for the sustainability of the plantation industry.
It would have been the ideal opportunity for the Labour Ministry to harp on productivity-based wage model as a bargaining tool, which the ministry has pathetically failed to convince, given the sizable salary package. The word “productivity” is anathema to trade unions in Sri Lanka including that of the plantation trade unions. The ramifications arising out of this wage increase are far-reaching in character and it is advisable for the Employers Federation of Ceylon to educate the members of its broader ill effects by way of a public seminar and convey its dissatisfaction to the government.
The biggest casualty in the aforesaid wage episode is the gradual demise of the collective bargaining process that led to Collective Agreements and plantation companies will have to think twice whether there is any rationale in entering into Collective Agreements by giving enhanced wages and other perks, if ill-conceived mechanisms are adopted by the government to give enhanced wages through Wages Boards by ignoring time-tested collective bargaining mechanism.
(The views contained in this article are the professional views of the writer and he could be contacted on athularanasinghe88@yahoo.com)
Features
Approach to constitutional reform
The S.J.V. Chelvanayakam KC Memorial Lecture delivered on 26 April, at Jaffna Central College, by Professor G.L. Peiris, an academic with outstanding credentials, was published, under the title, “Federalism and paths to constitutional reform,” in The Island of 27 April, 2026.
In Part II of the publication, titled “Advocacy of Federalism: Origins and Context,” Professor Peiris states: “At the core of political convictions he held sacrosanct was his unremitting commitment to federalism…”. Contrary to popular belief, however, federalism in our country had its origins in issues which were not connected with ethnicity. At the inception, this had to do with aspirations, not of the Tamils but of the Kandyan Sinhalese. The Kandyan National Assembly, in its representations to the Donoughmore Commission in 1927, declared: “Ours is not a communal claim or a claim for the aggrandizement of a few. It is the claim of a nation to live its own life and realise its own destiny”.
Commenting on S.W.R.D. Bandaranaike’s views, Professor Peiris states: “Soon after his return from Oxford, as a prominent member of the Ceylon National Congress, was an advocate of federalism. He went so far as to characterise federalism as ‘the only solution to our political problems”.
THE COMMON THREAD
The thread that is common to the sources cited above is that while their focus was on the political framework, there is not even a hint as to the territorial units to which the political framework of federalism is to apply. With time the Tamil “nation” claimed that their federal State was to be the Northern and Eastern Provinces of Sri Lanka. However, the Kandyan “nation” was silent on this issue. Since Britain annexed the Kandyan Kingdom and the unified, then Ceylon in 1815, for all intents and purposes it would be reasonable to assume that the claim of the Kandyan “nation” was to be the region under the last Kandyan King, leaving the Western and Southern coastal regions for the Rest of the “nation”.
Sri Lanka, while being a colony under the British, was not interested in political frameworks. Instead, the British were interested in structural arrangements that facilitated Administration. It is evident from the evolutionary processes explored by the British that subdivided units of a State are critical not only for effective Administration but also for the political framework that ensures political stability. Federalism, advocated by the Tamil and Kandyan Leaderships for territorial units, as claimed by them, would inevitably lead to political instability. The lesson to be learnt is not to start with political frameworks, such as Federalism, but to first decide on the territorial units, within which a State functions, to ensure stability, and then frame political aspirations of the People belonging to such a State, in order to ensure political and structural stability.
LESSONS of HISTORY
Material from an article, dated 16 June, 2016
“When the British took control of the Dutch possessions in former Sri Lanka, in 1796, the Kandyan Kingdom was independent and separate from the Maritime region. The Kandyan Kingdom consisted of the “central highlands with the eastern and southeastern coastal strips”. It was after ceding of the Kingdom, at the Kandyan Convention of 1815, and after the rebellion of 1817-1818, that the two regions were merged. However, despite the merger, the administration of the two regions remained divorced from each other, with the Kandyan region being divided into 11 Districts, and the Maritime region into five, creating a total of 16 Districts for the administration of the whole country (Sir Charles Collins, Public Administration of Ceylon, 1951, p. 49).
“The above arrangements continued until the recommendations of the Colebrook – Cameron Commission. In 1832, the recommendations of the Commission were accepted , “… and the separate administrative system for the Kandyan provinces was abolished and amalgamated with the territories on the littoral acquired from the V.O.C. in a single unified administration structure for the whole island. The existing provincial boundaries within the two administrative divisions – the Kandyan and maritime provinces – were redrawn, and a new set of five provincial units, of which only one – the Central Province – was Kandyan pure and simple, was established. The new provincial boundaries cut across the traditional divisions and placed many Kandyan regions under the administrative control of the old maritime provinces” (K.M.de Silva, A History of Sri Lanka, 1981, p. 263), continued until as late as 1889, resulting in nine Provinces for the sole purpose of facilitating the Colonial administration. In point of fact, the Province never functioned as the administrative unit. Instead, the administrative unit was essentially the District, and the situation has remained so throughout the Colonial period and into this day. According to Sir Charles Collins cited above: “Most provinces were divided into districts, each Government Agent having charge of his own district, with general supervision over the whole province. The districts not in the direct charge of Government Agents were under the control of assistant Government Agents”. (Ibid, p. 62.)
PRIORITISING POLITICS OVER STABILITY
The lesson learnt by the British was that if a Colony is to be Administered effectively, the Colonizer had to choose the most appropriate unit of administration. Similarly, to an Independent Sovereign State, Territorial Stability should be its foremost priority. This means deciding on the most structurally secure territorial unit within which political power sharing should operate and not prioritise political frameworks, such as Federalism, at the expense of the structural stability of the State. Political instability would have been inevitable had Sri Lanka succumbed to pressures from the Tamil and Kandyan Leaderships.
Although Britain was not concerned with territorial stability, they recognised that the District was the most effective unit for effective administration. In fact, the 1977 Constitution describes the Territory of Sri Lanka in terms of Administrative Districts. Despite this, it was the Indo-Lanka Accord that first recognised the Northern and Eastern Provinces as political units. Following this, the 13th Amendment of 1987 extended this recognition to all Provinces.
The adoption of the Province as the political unit may not have had an impact on the territorial integrity of the Sri Lanka State, except for the Northern and Eastern Provinces, judging from the events that followed over three-plus brutal decades. The transformation of the territory of Sri Lanka, from Administrative Districts to Provinces and Provincial Councils, is the direct result of prioritising politics over territorial stability. For India to be the handmaiden of this transformation is beyond comprehension because instability in Sri Lanka, in whatever form, would impact on India’s own territorial integrity. This serious blunder cannot be ignored any further for the sake of both Sri Lanka and India. It is imperative that measures are taken to engage in a course correction through Constitutional Reform.
PROPOSED CONSTITUTIONAL REFORMS
The path to Constitutional Reform should start with the territorial subdivision of the Sri Lankan State into Districts, not only to ensure the territorial integrity of the State but also to improve administrative and development efficiencies coupled with Local Government units; a lesson learnt from the British. Any political powers devolved/decentralised to Districts should be the responsibility of District Councils, elected by representatives to Local Governments within each District.
Political power at the Centre should reflect the commitment to a single Sri Lankan Nation, through an elected Legislature, with Executive Powers being shared by a President/Prime Minister, with a Cabinet made up of all communities, in the ratio represented in Parliament. An attempt to share Executive Power with all communities, in an inclusive Cabinet, has not been the practice in the past, and under the present government, as well, despite its strident calls for unity and reconciliation. Consequently, the tendency for minority communities is to seek peripheral power to the maximum extent possible.
CONCLUSION
The approach to Constitutional making has been how best to accommodate political power in the form of Federalism, first by the Kandyan “nation” and later by the Tamil “nation”. The claim by the Tamil Leadership morphed from Federalism to a Separate State resulting in tragedies of an unimaginable order, to the point of threatening the very existence of the Sri Lankan State.
The current arrangement is based on Power being devolved to Provinces, in the form of Provincial Councils, with no regard the Province, makes to the territorial durability of the Sri Lanka State. How successive Governments hope to prevent threats to territorial vulnerabilities is to curtail the operation of sensitive provisions of devolved powers. This is being disingenuous.
On the other hand, the more direct and forthright approach to Constitutional Reform is to make the District the unit of peripheral power in order to ensure territorial stability and effective peripheral development and share Executive Power with communities in the ratio of their representation in the Legislature. The first could be achieved through a referendum and the second by the President/Prime Minister of any government. This approach prioritises territorial stability over political power; a change that has eluded policymakers. Therefore, it is imperative that territorial stability is given the foremost place in Constitutional Reform processes for the sake of not only Sri Lanka but also for India, for reasons of connectivity.
by Neville Ladduwahetty
Features
Time to get ready to face power
The power cuts are already here. Perhaps, even before the date predicted by the Public Utilities Commision of Sri Lanka (PUCSL. The peak load has gone well past the threshold they indicated as the tipping point of 3030 MW of peak load. It is now will past 3100 MW and growing, perhaps triggered by the continued heatwave making the use of air conditioners and fans more frequent and by a wider group of consumers. The government insists there is no intention of power cuts but each of us have experienced some form of power outage, without notice, at some time or other.
It is in this scenario that the Ceylon Electricty Board (CEB), or whatever it is called now, had directed all roof top solar projects, over 300 MW capacity, to shut down for the period 10th April to 20th April.
This is in addition to the curtailment of all ground mounted solar and wind projects, and even mini hydro projects, without compensation, going on for some months.
One year of inaction by CEB with the problem staring in the face
If will be recalled that the same demand was made in April, 2025, after the debacle of the countrywide blackout on 9th February, 2025, whether caused by a monkey or otherwise.
The question to be raised is what steps have been taken by the then CEB, or the Ministry to anticipate the situation this year, too, and to try and mitigate the same.
The easy answer is absolutely nothing. If at all what has been done is unilaterally prevent any further addition of Roof Top Solar PV, under the provisions of the Surya Bala Sangramaya (SBS), is, undoubtedly, the only short term and economical means to add low cost renewable electrical energy to the grid.
The architect of the SBS, the Sustainable Energy Authority is deafening by their silence, when their signature project of prime national importance has been sabotaged, and now even the performance of the already installed systems are being curtailed.
This action is totally unbelievable when the use of expensive oil-based generation will continue unabated, even during the day, when there is so much solar energy already installed. Of course, the age-old excuse will be trotted out, of the non-firm nature of Solar and Wind and problems of grid stability, etc.
Many useful and practical solutions to face the growing issue of how to integrate the essential low cost but variable resources of solar and wind to the grid as an aftermath of the blackout were discussed over a year ago.
But nothing seems to have even been attempted. The most prominent among these was the proposal to add 300 MW of grid scale batteries, as indicated in the already-approved Long Term Electricity Generation Plan ( LTEGP 2024 – 2044,) of which 100 MW should have been in use by 2026. The tender for the addition of 16 X 10 MW battery storage at selected grid substations was called over a year ago. Some expectation of sanity
It is under these circumstances that the PUCSL called for a stakeholder consultation on the 10th April, 2026, after circulating a concept note, which was well attended. It was a breath of fresh air, in view of the downhill slide of the entire electricity sector in the recent months compounded by the raging controversy of the coal scam and the rapidly increased use of expensive diesel, in addition to the other fossil fuels, just to keep up the generation to match the demand. The double whammy of the doubling of the fuel prices , exacerbated the hit on not only the consumer’s monthly bill, but the national economy and balance of payments.
Therefore, it was most encouraging to note from the PUCSL’s concept note that sanity has prevailed at last. We have been demandin–g some concrete strategies and time based targets to rid at least the electricity sector from the use of expensive, polluting fossil fuels, commencing with oil. This is the only means by which the utility could hope to achieve some degree of economic and financial viability. They have continued to burden the consumer and the country by continually jacking up the consumer tariff, while ignoring any prudent means to clean up their Act. As a matter of interest, the CEB’s own data of 2023 shows that it is possible to save some Rs 113 Billion annually by replacing all oil-based generation using renewables. The country could have saved over $ 700 Million in Foreign Exchange and the Consumer Tariff could have been lowered by Rs 7.00 per Unit across all segments of consumers.
Therefore, the PUCSL concept paper out lines, some credible measures to eliminate the use of all of forms of oil for power generation in stages. The three tier of approach, outlined as option 1 to 3, reproduced here, should be commended for adopting a pragmatic approach, with very good chance of success.
Proposed options by PUCSL
(See Options 1 Peak Shaving Approach by 2027 and Option 2: Eliminating 2.06 GWh/day of diesel-based generation)
Considering even the recent past when we achieved a status of zero oil use, as compared to the present sorry status, this is not an extremely difficult task. We will have to substitute Solar PV to bridge the gap of reduced Hydro during dry months.
(See diagram 1)
RE Contribution 69% % Oil Usage 6.2 % No Diesel
(See diagram 2)
In Contrast on 30th March RE Contribution was only -43,5%
and oil use has gone up to -29.59%
However, as outlined in the introductory paragraphs of the concept paper, the driving force to promote this change is the early declaration of appropriately worked out tariffs for installation of storage batteries and delivery of the stored energy to the grid.
With the total lack of progress of proposals in the LTEGP 2025-2044 by the state institutions, it is prudent to assume any future initiatives can only come from private sector participation.
Using the power granted by the recently ratified Electricity Act NO, 36 (As amended) the PUCSL has moved with commendable speed to develop the Feed in Tariff declarations needed to enable the achievement of the above objectives and a further stakeholder consultation was held on the 24th of April when more detailed proposals were put forward.
However, although the responsibility of publishing the tariff remains with the PUCSL, unless the National System Operator ( NSO ), tasked with the planning and implementation of Electricity Sector developments , takes urgent action to implement the desired changes as a highest priority task, nothing will be gained to help the country to get out of this quagmire.
The Consumer Continues to be Burdened.
Further, as the time table proposed by the PUCSL itself indicates, even the first of the options can be implemented only in 2027, with the others following up to the year 2030.
These are very encouraging time targets and the consumers will eagerly await their achievement.
However, the threat of power cuts, as well as continuing increase in consumer tariff to fuel the use of diesel for power generation, is real and current. A further tariff increase of 18% has been demanded by the NSO, on top of the 15% granted on 1st April, 2026.
The Immediate Options Available to Consumers.
a) The CEB now refuses to provide any grid connection for integration of any rooftop solar PV systems under the Surya Bala Sangraamaya.
b) The only way available to the consumers is to install Off grid roof top solar systems with adequate batteries to be none dependent on the grid. Use the grid only during the off peak hours.
c) During most periods of the year, even under cloudy conditions there is some solar generation. To ensure the daily consumption is more than covered by the solar input and any surplus is used to charge the battery, to the level adequate to manage the evening and peak hour demand, the capacity of the solar panels and battery have to be determined.
d) It is to be noted that although only the relatively high-end domestic consumers could find the proposed scheme financially feasible under the present cost regimes, which will improve further when the second tariff increase is announced shortly, to those consuming over 250 Units/Month, their engagement has a sector wise positive implication which is beneficial to all levels of consumers.
e) The scheme will operate in an off grid mode, without exports to the grid at any time. Therefore, they will not contribute to the often voiced worries of over voltage, instability and variability in the national grid.
f) Once the PUCSL announces the required FIT and the NSO or the Distribution Companies institutes the necessary facilities, such as smart meters, such consumers, too, can further assist the grid by export of any excess they generate.
Proposal to Avoid Power Cuts Implementable by Domestic Consumers
There are several drivers which will attract the potential ” Prosumers” to adopt this option without delay.
* The consumer tariff will continue to rise
* Even the former Roof Top Solar Systems, without batteries, does not provide power during the power cuts or blackouts
* At present day prices, the investment is financially feasible, based on the savings of the current level of monthly electricity bill. A substantial bank loan can be comfortably settled from the savings
* Now cooking with electricity is no longer a financial burden but can save one from the cost and danger of LPG shortages and queues
* What you, do based on your economic ability, will be a service to all consumers as the resultant reduction of Peak Demand means the use of Diesel can be gradually reduced and the lower end consumers, too, will benefit.
* You will enhance your green credentials with your own financial benefits.
The overall benefit to the grid and other consumers
If the element of exorbitant cost of diesel-based generation is removed then there is no need for the increase of consumer tariff for all consumers.
What is more important is that trimming the peak load would drastically reduce the need for any power shredding that is happening on the sly now and thereby benefit all consumers,
The summary of Financial Analysis illustrating the viability based on currently available data is given here. This will improve drastically if a further increase in consumer tariff is granted, which appears inevitable. (See Table 01 – The basic data used for this analysis is available on request.)
by Eng Parakrama Jayasinghe
parajayasinghe@gmail.com
Features
From Coal to Solar: China’s sunken mines power a Green Revolution: Lessons for Sri Lanka
In a striking symbol of the global energy transition, vast stretches of once-abandoned coal mines in China have been reborn, not as relics of an industrial past, but as shimmering hubs of renewable energy.
What were once scarred landscapes, destabilised by years of mining, and later submerged by landslides and floods, have now been transformed into expansive artificial lakes.
Floating atop these waters are some of the world’s largest solar power installations, quietly generating clean electricity on a massive scale.
Among the most notable are the Fuyang Floating Solar Farm and the Huainan Floating Solar Farm. Together, they represent a remarkable engineering and environmental achievement.
The Fuyang facility boasts an installed capacity of 650 megawatts, producing approximately 700 million kilowatt-hours of electricity annually. Even more impressive, the Huainan project reaches a staggering 1 gigawatt capacity, generating nearly 1.8 billion kilowatt-hours each year. Combined, these floating giants produce enough electricity to power millions of homes without burning a single lump of coal.
A former General Manager of the Ceylon Electricity Board (CEB), a veteran electrical engineer, described the development as “a glimpse into the future of energy systems.”
“What China has demonstrated is not just technological capability, but strategic foresight. Turning environmentally degraded land into clean energy assets is the kind of thinking countries like Sri Lanka must begin to adopt,” he said.
Why solar on water?
Floating solar, or “floatovoltaics,” offers a range of advantages that traditional land-based solar farms cannot easily match.
Water naturally cools solar panels, improving their efficiency by an estimated 10 to 15 percent. In hot climates, this cooling effect can significantly boost electricity generation.
Additionally, the panels reduce water evaporation, a crucial benefit in regions facing water stress. By limiting sunlight penetration, they also help suppress algae growth, improving water quality.
Perhaps, most importantly, floating solar eliminates the need for large tracts of land. In densely populated or agriculture-dependent countries, this is a game changer.
A dual economy: Fish and power
In an innovative twist, some of these floating solar farms incorporate aquaculture beneath the panels. Known as the “fisheries + solar” model, it allows communities to cultivate fish in the shaded waters below, creating a dual-income system, energy production above, food production below.
This integrated approach not only maximises resource use but also supports local livelihoods, blending sustainability with economic resilience.
Environmental dividends
The environmental benefits are substantial. The Fuyang project alone reduces carbon dioxide emissions by an estimated 580,000 tons annually, while the Huainan facility cuts emissions by around 1.6 million tons each year.
Beyond emissions, these projects reclaim landscapes once deemed unusable—areas heavily damaged by coal extraction. In doing so, they rewrite the narrative of industrial decline into one of ecological restoration and innovation.
Sri Lanka: A nation poised for floating solar For Sri Lanka, the implications are profound.
Unlike China’s abandoned coal pits, Sri Lanka possesses thousands of irrigation tanks, reservoirs, and hydropower catchments that could serve as ideal platforms for floating solar. From the ancient tank systems of the dry zone to major reservoirs like Victoria Dam and Randenigala Reservoir, the country holds untapped potential to generate clean electricity without sacrificing precious land.
The country’s reliance on thermal power, particularly during drought periods when hydropower declines—has long been a challenge. Floating solar could provide a stabilising solution, reducing dependence on costly fossil fuels while complementing existing hydroelectric infrastructure.
Energy analysts note that integrating floating solar with hydropower reservoirs can create a hybrid system: solar power during the day, hydropower balancing supply at night. This synergy enhances grid stability and reduces overall generation costs.
The former CEB official stressed the urgency:
“Sri Lanka cannot afford to delay. With rising energy demand and climate pressures, we must explore every viable renewable option. Floating solar on our reservoirs is one of the most practical and scalable solutions available.”
Challenges and the road ahead
However, experts caution that careful planning is essential. Environmental assessments, grid integration, and financing mechanisms must be properly addressed. Community engagement, especially where fisheries are involved—will also be key.
Yet the blueprint already exists.
China’s transformation of submerged coal mines into renewable energy hubs offers more than inspiration—it provides a working model. For Sri Lanka, adapting that model to its own geography could mark a decisive step toward energy independence.
China’s floating solar farms stand today as one of the clearest symbols of a world in transition—from fossil fuels to renewables, from environmental degradation to restoration.
For Sri Lanka, the message is equally clear: the future of energy may not lie on land alone—but on water, where sunlight meets innovation.
If harnessed wisely, Sri Lanka’s vast network of reservoirs could one day mirror that transformation, turning calm waters into engines of sustainable growth.
by Ifham Nizam
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