40% salary demand could force electricity tariffs to double – NTNSP Chairman

Trade unions in Sri Lanka's power sector are currently on strike, demanding a 40% salary increase. Nusith Kumaratunga, the Chairman of the National Transmission Network Service Provider (Pvt) Ltd, warned that if this demand is met, electricity tariffs could potentially double. He shared these insights during a media briefing held today (11) by the management of the successor companies of the Ceylon Electricity Board (CEB). At the briefing, Kumaratunga confirmed that the electricity trade unions had put forward 64 demands. Out of these, 62 have been accepted, while two are still pending discussion with President Anura Kumara Dissanayake. He noted that most of the demands aim to keep benefits that workers had under the CEB. During initial talks, the boards of directors had already agreed to 59 of these requests. Kumaratunga mentioned that five issues remain unresolved after the first discussions, and the unions were told that decisions would be made after consulting with the relevant minister. One of the union requests includes maintaining bonuses like those previously given by the CEB, which management has agreed to for now until a new performance-based system is set up. Moreover, management has also agreed to add Rs. 11,000 as an allowance to salaries, along with a cost-of-living allowance, raising the average additional monthly payment to about Rs. 17,000. Kumaratunga stated that management has accepted all demands that can be authorized at the ministerial level. However, he pointed out that the suggested 40% salary increase would be unfair to other public sector workers. He explained that this increase would add Rs. 1.8 billion to monthly salary costs, totaling nearly Rs. 22 billion each year. He also highlighted that by December 31, 2025, the Ceylon Electricity Board is expected to show losses of around Rs. 35 billion in its private accounts.