Connect with us

News

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

Published

on

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



News

Elders’ home devastated by fire was a ‘house of horror’: Witnesses

Published

on

Death toll rises to 12: Director remanded

Some residents were allegedly chained

Police have come under public pressure to investigate allegations of inhumane treatmenf the residents at an elders’ home in Batagoda, which was also reportedly used as a care centre for persons with special needs, following a devastating fire that has so far claimed 12 lives.

Eyewitnesses who were among the first responders told the media that several residents had been chained inside rooms at the Senehase Kedella Elders’ Home when the fire broke out on Wednesday. They claimed that rescue efforts were hindered as iron chains could not be removed, and that some residents died while being restrained.

Authorities have not yet verified these claims, and Police said investigations are continuing.

Police spokesman ASP F.U. Wootler, contacted for comment, said there were rumours to that effect, but the Police were not in a position to verify the claims until a report from the Government Analyst was received. He said eight survivors with burn injuries were being treated in hospital.

Meanwhile, the Director of the facility had been arrested and was due to be produced before the Horana Magistrate’s Court, Police said adding that he was remanded till June 11.

The death toll from the fire has risen to 12 as of Thursday morning following the recovery of additional charred remains during ongoing forensic examinations at the site. Six others sustained serious injuries and are being treated at the Horana Base Hospital.

Police said 72 residents were inside the facility at the time of the blaze. Of them, 10 died inside the building, seven were injured and hospitalised, while 51 were rescued and relocated.

Survivors were initially housed at Batagoda Junior School before being transferred with Army assistance to another branch of the same care network in Galpatha.

A magisterial inquiry was conducted on Thursday morning. Horana Magistrate Lakmini Vidanagamage visited the scene. The burnt remains were examined and removed under judicial supervision.

Separately, allegations have emerged that residents were required to pay an admission fee of Rs. 75,000, along with a monthly charge of Rs. 35,000 to the centre. Police have not commented on these claims.

The director was taken to the scene as part of ongoing investigations, while forensic experts continue examinations to determine the cause of the fire, which remains undetermined.Anguruwatota Police are conducting investigations.

 By Norman Palihawadane and Nishan S Priyantha

Continue Reading

News

CERT : AI-generated videos depicting Prez, PM lure public into financial scams

Published

on

Sri Lanka CERT has issued a public warning over the circulation of artificial intelligence (AI)-generated videos falsely depicting President Anura Kumara Dissanayake, Prime Minister Harini Amarasuriya and several other prominent personalities to promote fraudulent investment schemes online.

According to complaints received by the national cyber security agency, the videos have been created using deepfake technology and are being used as part of attempts to defraud members of the public through financial scams.

The images of famous sports personalities and other public figures have also been misused in the deceptive content.

The agency has warned that similar AI-generated material has been used to spread false information relating to investment opportunities, employment offers, as well as matters concerning the country’s economy and tax policies.

According to Sri Lanka CERT, the videos are being widely shared across online platforms and frequently contain links urging viewers to make investments in return for purported profits.The agency has cautioned that these links may redirect users to fraudulent websites designed to steal personal information, financial data and money from unsuspecting victims.

Sri Lanka CERT has urged the public to exercise extreme caution when encountering such content online and advised against clicking on suspicious links or sharing personal information through unverified websites.

“The public should remain vigilant and avoid becoming victims of false information and online fraud schemes,” the agency said.

Sri Lanka CERT has also encouraged internet users to verify information through official sources before acting on any investment, employment or financial offers circulated via social media or other online platforms.

Continue Reading

News

New tax law comes into force

Published

on

Speaker Dr Jagath Wickramaratne endorsing the certificate on a Bill (File)

Speaker Dr Jagath Wickramaratne on Wednesday endorsed the certificate on the Inland Revenue (Amendment) Bill, bringing the legislation into force as the Inland Revenue (Amendment) Act, No. 11 of 2026, Parliament sources said.

The Bill, which amends the Inland Revenue Act, No. 24 of 2017, was passed by Parliament on May 19.

The new law introduces a series of reforms aimed at modernising tax administration procedures, improving compliance and enforcement mechanisms, enhancing the accuracy of tax calculations and deductions, and strengthening transparency within the tax system.

The amendments also support broader economic policy objectives and include measures designed to reinforce anti-money laundering safeguards.Among the key provisions of the Act is the mandatory use of Taxpayer Identification Number (TIN) certificates for specified high-value financial transactions.

The legislation also introduces revisions to the calculation of taxable income, clarifies tax exemptions applicable to certain projects and business entities, and expands the scope for information disclosure to relevant authorities.

The amendments are expected to improve the efficiency of tax administration while facilitating greater accountability and regulatory oversight.With the Speaker’s endorsement of the certificate, the Inland Revenue (Amendment) Bill has now become law as the Inland Revenue (Amendment) Act, No. 11 of 2026.

Continue Reading

Trending