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

The 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, the 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, the Chairman of National Transmission Network Service Provider (Pvt) Ltd. confirmed that the electricity trade unions had presented 64 demands. Out of these, 62 demands had already been agreed upon, while the remaining two were referred for discussion with President Anura Kumara Dissanayake.

He stated that the majority of the 64 demands were requests to retain the same privileges previously enjoyed under the CEB, and during the initial round of discussions the boards of directors had already agreed to 59 of those demands.

According to him, five issues remained after the initial discussions, and the unions were informed that decisions on those matters would be taken after 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, which management agreed to temporarily until a performance-based system is introduced.

Additionally, the management had agreed to provide Rs. 11,000 as an allowance added to salaries, along with a cost-of-living allowance, bringing the average additional monthly payment to around Rs. 17,000.

Kumaratunga said the management had agreed to all demands that could be approved at the ministerial level, but emphasized that the proposed 40% salary increase would be unfair to other public sector employees.

He explained that such an increase would raise salary expenditure by Rs. 1.8 billion per month, amounting to nearly Rs. 22 billion annually. He further 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 the 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 commenced operations yesterday, and since then their work had been disrupted by the ongoing union action.

Kumaratunga added that the unions were also demanding that a 25% salary adjustment granted to senior executives in 2024 be extended to all employees retroactively from January 1, 2024, which would require amending a Cabinet decision, something the boards of directors cannot do.

He added the unions had been given the opportunity to discuss the matter directly with the President, but expressed uncertainty about why the trade union action continues despite most demands already being addressed.