Trade unions currently engaged in strike action in the power sector have demanded a 40% salary increase, and if that demand is granted electricity tariffs may have to be increased by around 100%, according to Nusith Kumaratunga, Chairman of the National Transmission Network Service Provider (Pvt) Ltd.
Kumaratunga made these remarks while addressing a media briefing today (11) organized by the management of the successor companies of the Ceylon Electricity Board (CEB).
Speaking at the briefing, he confirmed that electricity sector trade unions had presented a total of 64 demands. Out of these, 62 demands have already been agreed upon, while the remaining two have been referred for discussion with President Anura Kumara Dissanayake.
He stated that most of the demands were requests to retain the same privileges previously enjoyed under the CEB. During the initial round of discussions, the boards of directors had already agreed to 59 of those demands.
According to Kumaratunga, five issues remained after the first round of discussions, and the unions were informed that decisions on those matters would be taken following consultations with the subject minister.
Among the requests made by the unions was the continuation of bonuses similar to those previously paid by the CEB. Management has agreed to continue these payments temporarily until a performance-based system is introduced.
In addition, management has agreed to provide an allowance of Rs. 11,000 added to salaries along with a cost-of-living allowance, bringing the average additional monthly payment to around Rs. 17,000.
Kumaratunga said management had approved all demands that could be addressed at the ministerial level, but emphasized that granting a 40% salary increase would be unfair to other public sector employees.
He explained that such an increase would raise salary expenditure by approximately Rs. 1.8 billion per month, amounting to nearly Rs. 22 billion annually. He also noted that as of December 31, 2025, the Ceylon Electricity Board had already recorded losses of around Rs. 35 billion in its private accounts.
“If this additional financial burden is added, electricity tariffs may have to be increased by nearly 100%,” he warned, adding that authorities must also consider the impact on the public, industries and the national economy.
The Chairman also pointed out that the newly formed companies had only begun operations yesterday, and their activities have already been disrupted by the ongoing trade union action.
Kumaratunga further stated that unions are also demanding that a 25% salary adjustment granted to senior executives in 2024 be extended to all employees with retrospective effect from January 1, 2024. However, he noted that this would require amending a Cabinet decision, which cannot be done by the boards of directors.
He added that the unions had been given the opportunity to discuss the matter directly with the President, but expressed uncertainty as to why the trade union action continues despite most of the demands already being addressed.
