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

A UN vessel arrived in Colombo yesterday (11) to conduct a month-long marine scientific survey in Sri Lanka’s Exclusive Economic Zone (EEZ). This is the first foreign scientific research vessel here since President Ranil Wickremesinghe banned such visits on January 1, 2024, for a period of one year. However, the ban remains in place with the NPP government yet to announce its new decision on the issue.

The following is the text of statement issued by the Foreign Ministry yesterday: “On the invitation of the Government of Sri Lanka, the United Nations-flagged vessel R/V Dr. Fridtjof Nansen, under the Food and Agriculture Organisation (FAO), is scheduled to arrive in Sri Lanka today to conduct a marine scientific survey in Sri Lanka’s Exclusive Economic Zone (EEZ) in collaboration with the Ministry of Fisheries, Aquatic and Ocean Resources and the National Aquatic Resources Research and Development Agency (NARA).

R/V Dr. Fridtjof Nansen supports countries in collecting critical scientific data for sustainable fisheries management and in understanding how climate change is affecting marine ecosystems. The survey, spanning 32 days, will focus on assessing marine living resources and marine ecosystems, providing updated scientific data that will support Sri Lanka’s sustainable fisheries management and ocean governance. During the mission, scientists will undertake a range of activities, including hydro-acoustic surveys to estimate the biomass and distribution of key fish stocks in Sri Lankan waters; assessment of marine pollution levels; and biodiversity monitoring.

An important component of the programme is capacity building. The mission will bring together Sri Lankan scientists from NARA and other national institutions with international experts, promoting scientific collaboration and knowledge exchange.

Sri Lanka previously hosted the R/V Dr. Fridtjof Nansen in 2018, when the vessel conducted a comprehensive survey of Sri Lanka’s continental shelf and upper slope, in collaboration with national institutions. Earlier, Nansen surveys were also carried out in Sri Lankan waters in 1978–1980, reflecting a long-standing scientific partnership under the Nansen programme.

Sri Lanka’s participation in this survey reflects the country’s continued commitment to sustainable fisheries, marine ecosystem protection, and international scientific cooperation in the Indian Ocean region.”

… but current assessment won’t be valid if Gulf war continues for more than two months

President Anura Kumara Dissanayake said that though continuous energy supply could now be assured it would be only possible to forecast and guarantee this reliably for a maximum period of two months. If the Middle East war continued beyond this two-month window, predictions based on current assessments would no longer hold, the President said.

President Dissanayake made these remarks addressing the Chamber of Lankan Entrepreneurs (COYLE) 2026 Annual General Meeting held in Colombo Monday afternoon (10). This year’s Annual General Meeting was held under the theme “Bridging Generations, Building Futures”.

“The President noted that although internal shocks have been overcome, the country is currently facing an external shock due to the war situation in the Middle East. Since the beginning of March, the price of a barrel of crude oil has increased by about 42 per cent, creating significant uncertainty in the global market. He added that uncertainty can also be observed in consumer behaviour in Sri Lanka, citing as an example the increase in diesel sales from 4,500 kilolitres on 1 March to 10,500 kilolitres by 3 March.

President Anura Kumara Dissanayake pointed out that while the crisis in 2022 arose due to a shortage of US dollars, the current situation is a supply crisis caused by disruptions in supply chains. He stated that this challenge can be overcome if everyone responds collectively rather than individually. He further noted that the government has established an “Economic Monitoring Committee” to address the crisis and is holding discussions with friendly countries to maintain supply chains.

However, at present we are facing an external shock. The war situation in the Middle East is disrupting the supply of goods and services. The world is interconnected through markets. In such an interconnected global system, any shock arising in one sector affects us as well. Therefore, the key question is how we withstand these external shocks.

At the beginning of March, a barrel of crude oil was priced at approximately USD 70. It has now risen to around USD 100, representing an increase of roughly 42%. Oil prices continue to fluctuate significantly, creating a climate of uncertainty worldwide. This situation has impacted all nations, generating economic pressures and in some cases, social strain. It is important to note that citizens are not to be blamed for these challenges. The consequences of fuel and gas shortages have been experienced directly by the population. In response, citizens have been lining up at fuel stations. Sales of diesel began with 4,500 litres on the first day of March and increased to 10,500 litres by 3 March.

Petrol sales initially rose from around 4,000 kilolitres to approximately 9,000 kilolitres, but have now fallen back below 6,000 kilo litres. Therefore, it is important to emphasise that no individual can remain safe or unaffected in isolation. If everyone collectively takes responsibility and acts together to address this challenge, it is only through such shared effort that we can overcome it for the benefit of all.

These external shocks are exerting a tangible impact on us, which has necessitated an increase in fuel prices. Approximately 47% of our fuel market is controlled by external entities, which makes it essential to establish trust with them. At the same time, it is important to bring fuel availability back to normal consumption levels. The recommendation is that, through collective effort, we should work together to reduce further for the benefit of all.

This is an era in which technology and science have given unprecedented power to warfare. As a result, it is impossible to predict the impact of such advanced military operations over the long term. Short-term forecasts are possible, but if the conflict continues beyond that period, no one can reliably predict the outcomes. Therefore, assurance can be provided that energy supply will be maintained over the next two months, however, prices may fluctuate. I am neither an owner of an oil well nor a representative of any oil company. These actions are not undertaken for personal profit. However, as a government, there is a responsibility to ensure an uninterrupted supply of energy.

All necessary measures have been put in place to manage internal pressures effectively. We have been able to address these domestic challenges, but confronting external shocks will require additional time. We are currently navigating a path of recovery and progress, which naturally entails encountering certain pressures. However, these challenges are being carefully managed and efforts are on-going to mitigate their impact. It is essential that everyone collectively faces these pressures, acting with consideration not only for oneself but for the welfare of the entire community. Consequently, some adjustment to consumption patterns is necessary. Unlike stable economies, nations facing global crises cannot rely solely on habitual consumption practices. In times of crisis, restraint and prudent economic behaviour are indispensable. I urge everyone to adopt a degree of moderation and participate in careful economic practices. By doing so collectively, we can successfully navigate this crisis and emerge stronger. “