- CEB unions warns of Stage 2 escalation
- CEB management mum about TU concerns
Trade Unions (TUs) affiliated to the Ceylon Electricity Board (CEB) yesterday (13) warned that they may escalate their industrial action to Stage 2 later this week – a move that could disrupt power supply as repairs would take longer due to the ongoing work-to-rule campaign.
Union representatives also cautioned that, in the event of a system collapse similar to earlier this year, restoring operations would take longer because employees would strictly adhere to the work-to-rule restrictions.
“So far, we have only limited official communication with management, but given the Government’s lack of proper response, we may have no choice but to escalate the TU action,” a senior member of the CEB Engineers’ Union (CEBEU), who requested anonymity, told The Sunday Morning.
The CEBEU has strongly objected to the issuance of assignation letters to CEB employees, highlighting that the process violates the Sri Lanka Electricity Act (as amended) and undermines fundamental employee rights, especially given the absence of a properly prescribed Voluntary Retirement Scheme (VRS), which they say prevents employees from making an informed decision about their future.
In a letter addressed to CEB Chairman and Ministry of Energy Secretary Prof. Udayanga Hemapala and CEB General Manager Eng. W. Edussuriya, the union noted that employees had been asked to choose between accepting assignations or opting for voluntary retirement without the VRS being formally prescribed as required by law.
Instead, employees have been referred to a purported draft VRS published on the CEB website, which the union describes as having no legal validity or authenticity.
“The act clearly requires that the VRS should be available at the time of issuing assignation letters so that employees can make a considered choice,” the union stated. “Issuing assignation letters in haste without a properly prescribed VRS and demanding a decision within two months is a gross violation of the law, procedural properties, and the fundamental rights of employees under Articles 12(1) and 14(1)(g) of the Constitution, as affirmed by the Supreme Court.”
The union also criticised the draft VRS for failing to provide essential details, such as timelines for payments, guarantees for settlement, or the obligations of employees who continue serving after opting for voluntary retirement. According to the union, this lack of clarity makes it impossible for employees to make an informed decision between assignation and retirement.
Adding to their concerns, the CEBEU highlighted contradictions between clarifications issued by the Public Sector Reform Secretariat (PSRS) regarding the assignation process and previous submissions made by the Attorney General’s office concerning the preparation of plans and documents under the Sri Lanka Electricity (Amendment) Act (2025).
The union also raised alarm over the legal status of successor entities, noting that boards of directors had not been appointed yet in accordance with the law. Assigning employees to such entities, it argues, is unlawful and further violates procedural and constitutional rights.
“Assignation letters issued under these circumstances are arbitrary, capricious, and have no force in law,” the union said. “Employees cannot be compelled to make a decision within the two-month period stipulated in these letters.”
The union has urged authorities to immediately rectify the situation to ensure the proper implementation of the VRS and to safeguard employee rights. Should the authorities fail to act, the union has indicated that it will pursue all available legal avenues to protect its members.
As of now, the CEB and the Ministry of Energy have not released any official response to the union’s objections. The situation has generated widespread concern among employees who are uncertain about their options and future under the current assignation process.
Speaking to The Sunday Morning, Prof. Hemapala stated that the VRS cost would be included in the tariff. However, the number of employees who will apply for the VRS is still unknown.
Regarding the ongoing TU action, the Secretary said the matter was currently being handled by the Minister.
The Sri Lanka Electricity (Terms and Conditions of Voluntary Retirement Scheme) Regulations of 2025 were issued by the Minister of Energy on 26 August under the Sri Lanka Electricity Act No.36 of 2024.
The regulations apply to all CEB employees who do not opt to be assigned to a successor company and wish to retire under the VRS. Eligible employees can submit applications using the form specified in the gazette, while those undergoing disciplinary inquiries or whose status is under review in any tribunal are not eligible to apply.
In response to demands from CEB engineers, Power Sector Reforms Secretariat Director General Pubudu Niroshan Hedigallage stated that while the VRS was funded by the Treasury, its cost was ultimately borne indirectly by consumers.
One of the trade union demands is to provide an unlimited VRS with three months’ salary for every year of service for employees with over 10 years of service. Meeting this demand would cost approximately Rs. 200 billion, he said.
“The Government’s policy is not to encourage employees – particularly executives – to leave. As a result, the upper limit for executives remains at Rs. 5 million, while the limit for non-executives has been raised to match this figure,” he added.
Noting that there are 24 demands in total, he said that the ministry had classified these into three groups: 10 for Minister/ministry consideration, eight for the Public Sector Reform Secretariat (PSRS), and six for the CEB Board of Management.
“Some of these should not even be considered demands, as they are part of the restructuring process and are to be fulfilled by the Minister, Secretary, and PSRS. There is no strict deadline of 15 September for these requirements and most feasible requests are expected to be completed by mid-September.”
Hedigallage said that contrary to some reports, transfer letters had not been issued to all employees. “Most employees are aware of this, but a few individuals with vested interests have tried to manipulate this perception,” he noted.
“Under the act, all employees receive a notice with their proposed assignation to successor companies. They have two months from receipt of the notice to respond. Employees who choose to join will receive a transfer letter, while others will be entitled to the VRS,” he added.