Thursday, February 26, 2026

Unions sound alarm over coal procurement and power sector restructuring

Sri Lanka's power sector faces mounting uncertainty as trade unions raise serious concerns about coal procurement irregularities and warn that ongoing restructuring efforts could have devastating consequences for the nation's energy security. The Ceylon Electricity Board Technicians' Union has sounded the alarm, describing the situation as a "dangerous and avoidable crisis" that threatens the stability of the country's electrical infrastructure.

Union Leaders Voice Critical Concerns

Kosala Abeysinghe, President of the Ceylon Electricity Board Technicians' Union, has emerged as a leading voice in highlighting the growing turbulence within the power sector. According to union representatives, the energy sector is being pushed toward a precarious situation that could have far-reaching implications for both consumers and the broader economy. These warnings come at a time when the country is already grappling with various economic challenges and cannot afford additional disruptions to essential services.

The union's concerns center on two primary issues: alleged irregularities in coal procurement processes and the potential negative impacts of proposed restructuring initiatives. These issues, according to union leaders, represent a perfect storm that could undermine the reliability and affordability of electricity supply across the nation.

Coal Procurement Under Scrutiny

Coal procurement has become a contentious issue within Sri Lanka's power generation landscape. The unions allege that serious irregularities have occurred in the procurement process, raising questions about transparency, cost-effectiveness, and adherence to proper procedures. These concerns are particularly significant given that coal-fired power plants play a crucial role in the country's energy mix, contributing substantially to electricity generation capacity.

The irregularities in coal procurement could potentially impact the cost of electricity generation, which would ultimately affect consumer tariffs. Additionally, any disruptions or inefficiencies in coal supply chains could lead to power shortages or force reliance on more expensive alternative fuel sources, further straining the power sector's financial position.

Restructuring Plans Face Opposition

Beyond procurement issues, unions are expressing strong opposition to proposed restructuring efforts within the power sector. While restructuring initiatives are often implemented to improve efficiency and financial performance, union representatives argue that the current plans could have unintended consequences that outweigh any potential benefits.

The restructuring concerns likely encompass various aspects of power sector operations, including organizational changes, workforce adjustments, and modifications to operational procedures. Union leaders fear that these changes could compromise service quality, reduce employment opportunities, and potentially weaken the sector's ability to meet growing electricity demand.

Economic Implications and National Impact

The power sector's stability is crucial for Sri Lanka's economic recovery and development. Any disruptions to electricity supply or significant increases in power costs could have cascading effects across multiple sectors of the economy. Manufacturing industries, commercial establishments, and residential consumers all depend on reliable and affordable electricity to maintain their operations and quality of life.

The unions' warnings about a potential crisis underscore the interconnected nature of energy security and economic stability. A weakened power sector could undermine investor confidence, affect industrial productivity, and create additional challenges for a country already working to stabilize its economic situation.

Stakeholder Response and Future Outlook

The concerns raised by power sector unions highlight the need for comprehensive dialogue between all stakeholders, including government officials, utility management, union representatives, and industry experts. Addressing the alleged irregularities in coal procurement will require transparent investigation and corrective measures to restore confidence in the system.

Similarly, any restructuring initiatives should be carefully evaluated to ensure they achieve their intended objectives without compromising service reliability or creating unnecessary disruptions. The involvement of experienced professionals and thorough impact assessments will be essential to navigate these challenges successfully.

Moving Forward: Balancing Reform and Stability

As Sri Lanka's power sector navigates these challenges, finding the right balance between necessary reforms and operational stability will be crucial. While improvements in efficiency and governance are important long-term objectives, they must be implemented in a manner that maintains service continuity and public confidence.

The situation calls for increased transparency in procurement processes, meaningful consultation with stakeholders, and careful planning of any restructuring initiatives. By addressing union concerns proactively and ensuring proper oversight of sector operations, authorities can work to prevent the "dangerous and avoidable crisis" that union leaders have warned about.

The coming months will be critical in determining whether the power sector can successfully address these challenges while maintaining its essential role in supporting the country's energy needs and economic development goals.