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CEB engineers’ union warns of economic fallout from new power sector restructuring

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The Ceylon Electricity Board Engineers’ Union (CEBEU) has issued a stark warning that the government’s sweeping power sector restructuring, under the Sri Lanka Electricity Act No. 36 of 2024, could unleash serious economic and operational risks — destabilising the state utility, burdening consumers, and discouraging investor confidence in the long run.

CEBEU Executive Comittee Member, Eng. Dhanuska Parakramasinghe, told The Island the restructuring effort, presented as a reform to improve efficiency, was being rushed through without transparency, stakeholder engagement, or a clear financial framework.

“This so-called restructuring is being packaged as reform, but it’s essentially a politically driven fragmentation of a strategic national utility,” Parakramasinghe asserted. “The consequences will not only hit employees — they will ripple across the economy, affecting tariffs, investor confidence, and national energy security.”

Under the new law, the CEB is set to be broken into multiple companies handling generation, transmission, and distribution. Parakramasinghe warned that this model, promoted as a solution to debt and inefficiency, mirrors failed experiments elsewhere in the region.

“Splitting the CEB without a proper regulatory and financial backbone is like dividing a heart into pieces and expecting it to beat,” he said. “The proposed entities will lack financial resilience, depend on unsustainable borrowing, and open the door to opportunistic private takeovers.”

The CEBEU argues that the government’s plan ignores the fundamental reality that the CEB, despite its challenges, provides reliable electricity to over 99% of the population — one of the highest coverage rates in South Asia.

Parakramasinghe cautioned that the restructuring would almost certainly lead to higher electricity tariffs for both households and industries, as private companies prioritise profit over affordability.

“When you introduce fragmentation and private interest into essential services, cost efficiency is lost,” he explained. “Consumers will end up paying more for less. This is not just a labour issue — it’s a national cost issue.”

Economists have also raised concerns that unbundling the CEB could deter long-term investors wary of political interference and policy inconsistency. “If the government’s objective is to attract private capital, the path it has chosen is the wrong one,” Parakramasinghe said. “Investors value stability and clarity — not rushed restructuring and regulatory confusion.”

The Union also accused authorities of coercing employees into an unfair Voluntary Retirement Scheme (VRS) designed to weaken the institution. Parakramasinghe described the scheme as “opaque, coercive, and deeply unjust,” alleging that it is being used to purge experienced professionals rather than strengthen the organisation.

“The so-called VRS has no transparency or fair valuation. It’s effectively a soft layoff mechanism to dismantle institutional memory and weaken collective resistance,” he said. “Once that knowledge is lost, rebuilding capacity will take years — something the country can ill afford.”

The CEBEU has already launched a phased industrial action campaign, now entering its second month, and has vowed to escalate if the government fails to respond. Parakramasinghe said engineers have so far maintained service continuity to minimise disruption to the public and the economy, but warned that patience is wearing thin.

“We have repeatedly urged dialogue, but the Ministry and the restructuring secretariat remain unresponsive,” he said. “If this continues, the union will have no choice but to intensify action — responsibly, but firmly.”

The Engineers’ Union emphasised that the real cost of this policy misstep will not be borne by engineers or bureaucrats but by the wider economy. Power supply instability, delayed generation projects, and tariff hikes could undermine industrial competitiveness, particularly in export-driven sectors such as apparel, rubber, and ceramics.

Parakramasinghe stressed that the Union is not opposing reform, but demanding that it be undertaken with proper governance, financial planning, and professional consultation.

“Electricity is not just another commodity. It is the economic bloodstream of the country,” he said. “Reforms must be transparent, economically sound, and rooted in national interest — not driven by short-term political optics.”

He urged the government to revisit the Electricity Act and hold inclusive consultations with engineers, economists, regulators, and the private sector before proceeding.

“The President and the Minister of Power must understand that ill-considered restructuring could push Sri Lanka’s power sector from a technical challenge to an economic crisis,” Parakramasinghe warned. “We are ready to contribute to genuine reform — but not to a process that dismantles what generations of professionals have built.”

A senior CEB official, contacted by The Island, declined to comment.

By Ifham Nizam



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Plans to open underutilised state land for new investment opportunities

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A discussion between President Anura Kumara Dissanayake and the Circular Revision Committee appointed to review and update circulars issued under the State Lands Ordinance and the Land Development Ordinance was held on Tuesday  (16)  afternoon at the Presidential Secretariat. The Committee has been mandated to recommend to the Cabinet the cancellation of out-dated circulars, the issuance of new circulars, and the revision of existing circulars to ensure alignment with current requirements.

The Committee is chaired by the Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation, D.P. Wickramasinghe. Its other members include the Senior Additional Secretary to the President (Constitutional and Statutory Affairs Division), Legal Adviser to the Presidential Secretariat, an Additional Solicitor General from the Attorney General’s Department, the Additional Secretary (Lands) of the Ministry of Agriculture, Livestock, Lands and Irrigation, the Additional Director General of the National Budget Department, the Western Province Land Commissioner, the Divisional Secretary of Nuwaragampalatha East, the Deputy Chief Valuer of the Valuation Department and the Director (Lands) of the Mahaweli Authority.

The Commissioner General of Lands serves as the Convener of the Committee.

The Committee’s responsibilities include establishing a reliable, uniform and regularised system of land taxation within the existing legal framework, ensuring state revenue optimisation without prejudice to lessees. This includes reviewing annual lease rentals charged on long-term leases and grants, aligning related circulars with current requirements, and amending or formulating new provisions and directives where necessary.

During the meeting, detailed discussions were held on the proposals submitted by the expert committee in relation to the revision of these circulars.

The President emphasised that a new, time-appropriate policy should be formulated to address the underutilisation of State lands and to ensure their more efficient use.

Deputy Minister of Lands and Irrigation Aravinda Senarath, Secretary to the President Dr. Nandika Sanath Kumanayake, Legal Adviser to the President, Senior Attorney-at-Law J.M. Wijebandara, Secretary to the Ministry of Agriculture, Livestock, Lands and Irrigation D.P. Wickramasinghe, Additional Solicitor General of the Attorney General’s Department, President’s Counsel Ravindra Pathiranage, Commissioner General of Lands Chandana Ranaweraarachchi, Director General (Institutional Affairs), Ministry of Finance, Planning and Economic Development J.G.L.S. Jayawardena, Additional Director General (National Budget Department) D.A. Asantha Gunasekara, and Commissioner of Lands (Leasing Division) P.K.C. Nilani Mahindaganamage, together with members of the Committee, were also present.

Senior officials from the Ministry of Finance and the Ministry of Agriculture, Livestock, Lands and Irrigation also attended the meeting.

(PMD)

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National Export Development Plan (2026–2030) presented to the President

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Marking an important milestone in Sri Lanka’s economic development, the National Export Development Plan (NEDP) for the period 2026–2030 was presented to President Anura Kumara Dissanayake on Tuesday morning (16) at the Presidential Secretariat.

The 2026–2030 National Export Development Plan (NEDP) is a key national programme formulated in line with the Government’s policy direction under the 2025 Budget. It aims to strengthen the country’s export sector and achieve export-led sustainable economic growth.

The strategic plan has been developed under the guidance of the Ministry of Industry and Entrepreneurship Development and the leadership of the Sri Lanka Export Development Board (EDB), with technical assistance provided through the Asian Development Bank’s (ADB) Policy-Based Lending (PBL) programme. It is the result of an extensive consultative process carried out in close collaboration with key government institutions, private sector stakeholders, and development partners.

The proposal submitted by the Minister of Industry and Entrepreneurship Development to recognise the “Sri Lanka National Export Development Plan 2026–2030” as the official strategic framework for export development and promotion in Sri Lanka was approved by the Cabinet of Ministers on 4 May 2026. The Plan reflects a broad consensus among government institutions, private sector experts, and international development partners.

In line with the national vision of “A Thriving Nation – A Beautiful Life”, the Plan has been formulated to enhance Sri Lanka’s export competitiveness and achieve an export revenue target of USD 36 billion by 2030.

The core vision of the Plan is to transform Sri Lanka into a competitive logistics and knowledge-based export hub serving regional and global markets. The strategy is based on two key interconnected pillars: “horizontals” and “verticals”, which together provide the foundation for strengthening export competitiveness, diversification, and sustainable growth.

The horizontal enablers, which support the growth and expansion of all priority sectors, include logistics and integrated hub operations, trade facilitation, trade finance and reforms in the business and investment environment, trade promotion and market linkages, quality management, standards, environmental, social and governance (ESG) capacity development, as well as entrepreneurship and innovation.

The Plan also identifies eight priority export sectors to enhance export diversification and value addition, and to position Sri Lanka more competitively in global markets. These include automotive components, mineral-based industries, rubber-based industries, maritime industries (including boat and shipbuilding), spices and concentrates, digital products and services, electrical and electronic equipment, and processed food and beverages.

The preparation of the Plan involved contributions from over 300 stakeholders, including government institutions, the private sector, civil society organisations and international development partners. Broad consensus was achieved through consultations held from October to December 2025 and workshops conducted in January 2026.

The Government expects that, with implementation supported by strong governance and monitoring framework, the Plan will elevate local products to international standards and ensure long-term economic stability and growth. It is further anticipated that the National Export Development Plan will serve as a key driver of Sri Lanka’s economic progress in the years ahead.

Minister of Labour and Deputy Minister of Finance and Planning Dr. Anil Jayantha Fernando, Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Senior Additional Secretary to the President and Secretary to the Ministry of Energy Russell Aponso, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, and Chairman of the Sri Lanka Export Development Board Mangala Wijesinghe were also present at the event.

[PMD]

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Complaint of custodial deaths and torture submitted to UN

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Senaka and Aisha

The Committee for Protecting Rights of Prisoners (CPRP) has complained to the UN regarding custodial deaths.

Executive Director of the Committee, Attorney-at-Law Senaka Perera told The Island that they had submitted written submissions to the visiting UN Subcommittee on Prevention of Torture (SPT) on Monday (15). “We are confident that they’ll take up the issues at hand with the government and take tangible measures to improve the conditions in prisons and detention facilities,” Perera said.

The SPT is here from 15 to 24 June. The visiting delegation consists of Aisha Shujune Muhammad, Head of Delegation (Maldives), Jakub Julian Czepek (Poland), Nika Kvaratskhelia (Georgia), Anica Tomsic (Croatia) and two human rights officers from the Office of the High Commissioner for Human Rights.

Claiming that there had been 184 prison deaths in 2024, the Committee asserted that though there was a drop in the number of cases, the deaths caused by underlying health complications and systemic issues weren’t available at the moment.

According to a copy of the submissions made to the SPT, received by The Island, there had been seven custodial deaths this year alone, reported from various parts of the country.

The Committee took a very critical position, while Foreign Minister Vijitha Herath assured the visiting delegation that the government didn’t tolerate torture at all.

The Ministry statement Monday night quoted Herath as having described the government response as zero tolerance policy.

The Committee for Protecting Rights of Prisoners also dealt with several other contentious issues, including special treatment granted to those with political connections and privileged backgrounds. Perera alleged that in spite of a change of government, in 2024 September, the much anticipated improvements failed to materialise and the continuing custodial deaths highlighted the crisis in the prisons and detention facilities.

According to the Committee, the situation was so bad and further deteriorating in overcrowded prisons, the national overcrowding rate has reached an unsustainable 286.6%, with some facilities, like the Vavuniya Remand Prison, exceeding capacity by 300%.

A significant portion of this population (65.4%) consists of persons not convicted awaiting trial, the Committee said, urging the SPT to look into the pathetic situation.

The Committee also complained of torture and ill-treatment at some detention facilities. There had been cases of lawyers, visiting detention centres at Welisara and Boossa, been subjected to degrading and humiliating searches, including forced removal of clothing.

The Committee also brought to the SPT’s notice how the Supreme Court, on 14 December, 2023, held the former Inspector General of Police (IGP), Deshabandu Thennakoon, personally responsible for torture. The failure on the part of prison authorities to grant inmates a fair hearing during internal investigations, too, has been raised by the Committee.

Among the other issues that had been raised were enforced disappearances, health and medical conditions, food, water and sanitation, corporal punishments and the operation of detention facilities within military bases.

Referring to the enforced disappearance of Gonapinuwala Kapila Kumara de Silva on 27 March, 2024, the Committee alleged that the Attorney General failed to take action against the perpetrators, believed to be members of the Special Task Force (STF)

The Committee alleged that in spite of them submitting formal complaints and an urgent letter to the Attorney General demanding prosecution under the International Convention for the Protection of All Persons from Enforced Disappearances Act, No. 5 of 2018, the AG took no meaningful action.

Consequently, CPRP filed a Writ of Mandamus petition in the Court of Appeal (CA/WRIT/185/26) against the Attorney General and other officials, seeking judicial intervention to compel investigation and prosecution. The case remains pending

by Shamindra Ferdinando

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