Thursday Mar 12, 2026
Thursday Mar 12, 2026
Thursday, 12 March 2026 05:37 - - {{hitsCtrl.values.hits}}
Electricity tariffs could rise by nearly 100% if trade unions succeed in securing a 40% salary increase in the power sector, National Transmission Network Service Provider Ltd., Chairman Nusith Kumaratunga warned yesterday, even as unions later decided to suspend their strike action following discussions with the Labour Ministry.
Electricity trade unions announced that the strike, launched over the restructuring of the Ceylon Electricity Board (CEB) and the creation of six successor companies, would be temporarily called off after talks with Ministry officials.
The unions said steps would be taken to restore any disruptions to electricity supply as soon as possible.
Earlier in the day, Kumaratunga told a media briefing that the key outstanding demand raised by unions was a 40% salary increase, which he said would place a significant financial burden on the sector.
He said unions had submitted 64 demands during negotiations with management, of which 62 had already been accepted. The remaining two matters have been referred for discussion with President Anura Kumara Dissanayake.
Most of the demands related to retaining benefits and privileges previously enjoyed by employees under the CEB prior to the sector’s restructuring, Kumaratunga said.
The Boards of Directors of the newly formed electricity sector companies had already agreed to 59 demands during the initial round of discussions, leaving five issues for further review with the subject Minister.
Management also agreed to continue bonus payments temporarily until a performance-based system is introduced.
In addition, an allowance of Rs. 11,000 together with a cost-of-living allowance was approved, increasing the average monthly payment to employees by about Rs. 17,000.
However, Kumaratunga said granting the requested 40% salary increase would increase salary expenditure by around Rs. 1.8 billion per month, or nearly Rs. 22 billion annually.
He noted that as at 31 December 2025, the CEB had already recorded losses of about Rs. 35 billion in its accounts.
“If this additional financial burden is imposed, electricity tariffs may have to increase by nearly 100%,” he said, warning that the impact would fall on households, industries, and the wider economy.
Kumaratunga also said unions were requesting that a 25% salary adjustment granted to senior executives in 2024 be extended to all employees retroactively from 1 January 2024, a step that would require revising an existing Cabinet decision.
Such a change cannot be made by the Boards of Directors and would have to be considered at the political level, he said.
Kumaratunga added that unions had already been given the opportunity to discuss the outstanding issues directly with the President, but said it remained unclear why the strike action had continued despite most demands being addressed.
