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CEB reforms: VRS system aims to retain experienced staff: PSRS

CEB reforms: VRS system aims to retain experienced staff: PSRS

28 Sep 2025 | By Maheesha Mudugamuwa


  • Says only 25 out of 42 CEB TUs are participating in strike
  • Claims and counter-claims about impact of TU action on the public
  • Unions take their woes to ILO


The Power Sector Reforms Secretariat (PSRS) has openly challenged the Ceylon Electricity Board (CEB) unions, inviting engineers to directly discuss their concerns rather than relying on politically affiliated representatives who, according to the PSRS, lack technical knowledge and fail to truly represent employees’ demands.

According to the PSRS, the union actions by CEB employees have now weakened and have little impact on the CEB, the Government, or consumers. 

“As of now, only around 25 out of 42 unions are participating in Trade Union (TU) actions. Discussions have been held with three of these 25, and another group is expected to come for discussions this week,” PSRS Director General Pubudu Niroshan Hedigallage told The Sunday Morning.

“We invite all unions to come forward, discuss their issues with us, and resolve these matters while supporting the reform process, rather than sticking solely to their demands. This process is aimed at enhancing efficiency and breaking the State monopoly,” he said.

Hedigallage explained that CEB employees would be recruited for only four out of the six companies proposed under the new act, as the Government had no plan to remove any employees currently working at the CEB.

“There is a surplus of employees at the CEB. Only higher-level positions such as engineers, accountants, and human resource managers have left the country over the past several years due to the economic crisis. Middle- and lower-level employees remain. We do not want to lose the essential employees currently at higher levels, but we support reducing middle- and lower-level staff, which is why the Voluntary Retirement Scheme (VRS) was implemented,” he said.

Reiterating that the CEB would not be privatised, Hedigallage clarified that the companies would remain 100% State-owned.

He also assured that all employees would receive the benefits they were entitled to. For example, arrangements have been made to provide the sick leave allowance for 2023 and other demands are being considered. However, they must be fair, as these benefits were funded through consumer tariffs, he stressed.


CEBEU stance 


Since 4 September, TUs affiliated with the CEB have been engaged in a work-to-rule campaign, limiting their activities strictly to contractual duties.

According to the unions, the final decision on whether to continue or withdraw from the campaign is expected to be made after a scheduled meeting with the Minister of Energy on Monday (29). Until then, the campaign remains in effect.

The ongoing actions stem from several underlying issues. During the previous Government, TU activities were suppressed, with court orders issued against 92 union leaders, which had forced the unions to remain largely silent. The current Government’s proposed restructuring of the CEB, which involves reducing the organisation into four entities rather than the 12 previously planned, has created concerns among employees, particularly senior staff nearing retirement.

In response to Hedigallage’s claim that TU actions have had little effect on the CEB management or consumers, the CEB Engineers’ Union (CEBEU) emphasised that the board’s management had indeed been significantly impacted, while all unions had taken measures to minimise any effect on consumers.

A senior CEBEU representative, speaking on condition of anonymity to The Sunday Morning, explained that although engineers and other CEB employees were actively fighting for their rights, all unions were mindful of the public. 

“Our current TU actions are designed to have zero or minimal impact on consumers. That does not mean the action is unsuccessful. On the contrary, it has been effective; management is deeply disrupted by the ongoing work-to-rule campaign,” the representative said.

The CEBEU raised concerns about the lack of expert representation throughout the reform process. The union alleged that senior PSRS officials had handpicked several CEB officers who remained silent and uncritically supported the reforms, leaving no proper representation to voice employees’ genuine concerns.

“As a result, these reforms are being implemented in an ad hoc manner, without a scientific or structured approach, which could have long-term consequences for the entire country. When a specialised organisation like the CEB is being reformed, decisions should be guided by experts, not by inexperienced officials suddenly appointed to critical positions with political backing,” the representative charged.

Highlighting the importance of public accountability, the CEBEU official stressed: “Some individuals appear to treat the CEB as if it were their personal property, making decisions at will. This is entirely wrong, as the CEB is a State-owned institution, funded by public money, and must be managed responsibly for the benefit of the people.”


ILO intervention 


As part of this effort, the unions have submitted a formal letter to the International Labour Organization (ILO) requesting intervention regarding their concerns. Union representatives subsequently participated in discussions at the ILO’s Country Office in Colombo, which were reported as successful, with ILO officials confirming their active involvement in addressing the matter.

As learnt by The Sunday Morning, the ILO has raised serious concerns over the ongoing reform process, calling parts of it a violation of workers’ rights, during a meeting with TUs held on Thursday (25).

The meeting, mediated by Leslie Devendra of the Sri Lanka Nidahas Sevaka Sangamaya (SLNSS), brought together all unions that signed the recent TU demands. The discussion, which lasted for more than two-and-a-half hours, was attended by the ILO Country Director and senior staff.

ILO representatives had expressed their surprise at the manner in which reforms were being implemented, particularly criticising the use of assignation letters, which they described as a “gross violation” of TU rights, national labour law, and the country’s Constitution. They had noted that the actions could amount to contempt of court, aligning with earlier statements from the CEBEU.

In a notable move, ILO officials had also pledged to raise the issue in their upcoming country report to be sent to their headquarters in Geneva. They had also said that the matter would be brought to the attention of the United Nations Human Rights Council (UNHRC) and communicated to the International Monetary Fund (IMF), stressing the need to protect workers’ rights during one of the most significant reform exercises in Sri Lanka’s history.

Officials had further expressed concern over the absence of labour law experts in the reform secretariat and indicated willingness to offer technical support by engaging with the Ministry of Energy. During the meeting, they had contacted the Commissioner General of Labour and promised to coordinate with both the Energy Ministry and the Minister of Labour to facilitate mediation through the Department of Labour.


Govt. stance 


Meanwhile, commenting on the ongoing issue, Energy Minister Kumara Jayakody said that the persistent inefficiencies in the power sector stemmed from stagnant bureaucracy and long-standing institutional structures.

He pointed to the need to reform these structures to create new opportunities for qualified professionals across various fields.

The Minister also shared insights from his recent visit to India, noting the significant progress achieved in the country’s power sector through the adoption of modern technologies and innovative approaches.

He stressed that effective administrative structures were crucial for the development of the electricity sector and reaffirmed his commitment to implementing the electricity restructuring programme to drive continuous growth.




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