{"id":87968,"date":"2013-05-22T01:15:20","date_gmt":"2013-05-21T19:45:20","guid":{"rendered":"http:\/\/www.colombotelegraph.com\/?p=87968"},"modified":"2013-05-29T11:46:17","modified_gmt":"2013-05-29T06:16:17","slug":"wikileaks-jvp-electricity-strike-could-delay-reforms-us","status":"publish","type":"post","link":"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/","title":{"rendered":"WikiLeaks: JVP Electricity Strike Could Delay Reforms &#8211; US"},"content":{"rendered":"<p><strong>&#8220;Unions affiliated with the Marxist- Nationalist Janatha Vimukthi Peramuna (JVP) party have warned of a strike and country-wide blackout on May 23 in protest of government moves to present electricity reforms to Parliament, which they fear would lead to privatization of the state electrical utility. However, the strike may be ineffective (i.e. unable to produce a blackout or force the Government of Sri Lanka (GSL) to give in to union demands) as technical staff, including engineers, will not be joining the protest. Nonetheless, the government may delay the presentation of the reform bills in Parliament to give time for discussions which would appease technical unions, which want more time to study the bills. This is a first, albeit small, test of this Government&#8217;s willingness to stand up for needed reforms in the power and energy sector.&#8221; the US Embassy Colombo informed\u00a0Washington.\u00a0<\/strong><\/p>\n<div id=\"attachment_87969\" style=\"width: 210px\" class=\"wp-caption alignleft\"><a href=\"http:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/lal-kantha\/\" rel=\"attachment wp-att-87969\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-87969\" class=\"size-full wp-image-87969\" title=\"lal-kantha-\" src=\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha-.jpg\" alt=\"\" width=\"200\" height=\"200\" srcset=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha-.jpg 200w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha--150x150.jpg 150w, https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha--50x50.jpg 50w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a><p id=\"caption-attachment-87969\" class=\"wp-caption-text\">K.D.Lalkantha - Head of the JVP unions<\/p><\/div>\n<p>The Colombo Telegraph found the related leaked cable from the\u00a0<span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.colombotelegraph.com\/?s=WikiLeaks&amp;x=10&amp;y=1\">WikiLeaks<\/a><\/span>\u00a0database.The unclassified cable was written on May 19, 2006.<\/p>\n<p>According to Mr. M.M.C. Ferdinando, Secretary, Ministry of Power and Energy, the government is determined to go ahead with the reforms. Speaking at a recent energy managers meeting organized by the PUC, he suggested that the government may refer the bills to a parliamentary consultative committee without directly presenting them to Parliament on May 23 as planned. According to Ferdinando, this decision may delay the parliamentary presentation to early June. It is not clear if this move would be taken due to JVP protests or due to complaints of inadequate time for consideration of the bills.<\/p>\n<p>Placing a comment the Embassy wrote;\u00a0Recently, the government has shown signs of moving reforms ahead in the electricity and energy sectors; the most important being the decision to procure a much delayed and much needed coal power plant. Last week, the President laid the foundation stone for a 300MW coal power plant, which will be built by the Chinese under a long- term concessionary loan. In April 2006 the government increased fuel prices, for the first time since June 2005, and is reportedly likely to do so again in the coming days. This may partially reduce government subsidies of fuel (though a recent analysis suggested that, with oil topping USD 70 per barrel, the Government may spend close to USD 2 billion on fuel subsidies in 2006). The GSL&#8217;s response to threats by the unions and decisions made surrounding the potential strike could be a harbinger of whether this government will stand for reform or cave in to union pressure on a variety of matters.<\/p>\n<p>Read the cable below for further details;<\/p>\n<pre>VZCZCXRO0291\r\nRR RUEHLMC\r\nDE RUEHLM #0819\/01 1390710\r\nZNR UUUUU ZZH\r\nR 190710Z MAY 06\r\nFM AMEMBASSY COLOMBO\r\nTO RUEHC\/SECSTATE WASHDC 3409\r\nINFO RUCPDOC\/USDOC WASHDC\r\nRUEHNE\/AMEMBASSY NEW DELHI 9643\r\nRUEHKA\/AMEMBASSY DHAKA 9204\r\nRUEHIL\/AMEMBASSY ISLAMABAD 6095\r\nRUEHKT\/AMEMBASSY KATHMANDU 4130\r\nRUEHCG\/AMCONSUL CHENNAI 6649\r\nRUEHLMC\/MILLENNIUM CHALLENGE CORP<\/pre>\n<pre>UNCLAS SECTION 01 OF 02 COLOMBO 000819 \r\n\r\nSIPDIS \r\n\r\nSTATE FOR EB AND SA\/INS; MCC FOR D.NASSIRY AND E.BURKE \r\n\r\nUSDOC FOR EROL YESIN \r\n\r\nSIPDIS, SENSITIVE \r\n\r\nE.O 12958: N\/A\r\nTAGS: ECON ENRG CE\r\nSUBJECT:  Electricity strike could delay reforms \r\n\r\nRef:  05 Colombo 1901 \r\n\r\n\u00b61.  (U) Summary:  Unions affiliated with the Marxist-\r\nNationalist Janatha Vimukthi Peramuna (JVP) party have\r\nwarned of a strike and country-wide blackout on May 23 in\r\nprotest of government moves to present electricity reforms\r\nto Parliament, which they fear would lead to privatization\r\nof the state electrical utility.  However, the strike may be\r\nineffective (i.e. unable to produce a blackout or force the\r\nGovernment of Sri Lanka (GSL) to give in to union demands)\r\nas technical staff, including engineers, will not be joining\r\nthe protest.  Nonetheless, the government may delay the\r\npresentation of the reform bills in Parliament to give time\r\nfor discussions which would appease technical unions, which\r\nwant more time to study the bills.  This is a first, albeit\r\nsmall, test of this Government's willingness to stand up for\r\nneeded reforms in the power and energy sector.  End Summary. \r\n\r\n\u00b62.  (U) The government is planning to present two bills to\r\nthe parliament to implement electricity sector reforms\r\nagreed in 2005 (reftel) after protracted discussions between\r\nthe government and the unions.  The amendments to the Ceylon\r\nElectricity Board Act and the Electricity Reform Act would\r\nallow the state-owned power utility, Ceylon Electricity\r\nBoard (CEB), to be reconstituted as a holding company and\r\nestablish six subsidiary companies to take over the current\r\ngeneration, transmission and distribution functions of the\r\nCEB.  The CEB would fully own these subsidiary companies. \r\n\r\n\u00b63. (U)  The JVP-aligned unions do not support any reforms\r\nand did not approve the 2005 reform package.  The JVP fears\r\nthese reforms will lead to the eventual privatization of the\r\nCEB.  The JVP union in the CEB has threatened to stop work\r\non May 23 and has warned of a countrywide power outage\r\nunless the bills are withdrawn. \r\n\r\n\u00b64.  (SBU) The JVP trade union action is unlikely to be\r\neffective.  The powerful engineers union of the CEB will not\r\nbe joining the strike.  Ananda Piyatilake, President of the\r\nengineer's union, told EconFSN that their union has given\r\nconsent to the reforms, but is urging the government not to\r\nrush the legislation through parliament.  The engineer's\r\nunion wants time to study the legislation to see if it\r\ncomplies with reforms agreed to last year.  (Note:  The\r\ndraft legislation was made available to the public only\r\nrecently and not in sufficient numbers - the government\r\npublication sales office received just 15 copies which sold\r\nout immediately.  End note.)  According to Piyatilake, the\r\nJVP strike will not be effective because engineers and\r\ntechnical staff would not participate.  The JVP union has\r\nmembership among clerical and other non-technical staff of\r\nthe CEB.  While the JVP union has threatened to bring\r\nworkers at the government-owned Ceylon Petroleum Corporation\r\n(CPC) into the strike, several union representatives at the\r\nCPC told EconFSN that they are not likely to join in a\r\nstrike, although they want to show their cooperation,\r\npossibly through limited action walkout protests or the\r\nlike. \r\n\r\n\u00b65.  (U) Meanwhile, CPC unions are holding separate\r\ndiscussions with the Government regarding CPC reforms.  The\r\nunions are urging the government to take action to return to\r\nthe CPC the 33 percent of total CPC shares held by the\r\nTreasury.  CPC unions also fear eventual privatization of\r\nthese shares. \r\n\r\n\u00b66.  (U) According to Mr. M.M.C. Ferdinando, Secretary,\r\nMinistry of Power and Energy, the government is determined\r\nto go ahead with the reforms.  Speaking at a recent energy\r\nmanagers meeting organized by the PUC, he suggested that the\r\ngovernment may refer the bills to a parliamentary\r\nconsultative committee without directly presenting them to\r\nParliament on May 23 as planned.  According to Ferdinando,\r\nthis decision may delay the parliamentary presentation to\r\nearly June.  It is not clear if this move would be taken due\r\nto JVP protests or due to complaints of inadequate time for\r\nconsideration of the bills. \r\n\r\n\u00b67. (SBU) Comment:  Recently, the government has shown signs\r\nof moving reforms ahead in the electricity and energy\r\nsectors; the most important being the decision to procure a\r\nmuch delayed and much needed coal power plant.  Last week, \r\n\r\nCOLOMBO 00000819  002 OF 002 \r\n\r\nthe President laid the foundation stone for a 300MW coal\r\npower plant, which will be built by the Chinese under a long-\r\nterm concessionary loan.  In April 2006 the government\r\nincreased fuel prices, for the first time since June 2005,\r\nand is reportedly likely to do so again in the coming days.\r\nThis may partially reduce government subsidies of fuel\r\n(though a recent analysis suggested that, with oil topping\r\nUSD 70 per barrel, the Government may spend close to USD 2\r\nbillion on fuel subsidies in 2006).  The GSL's response to\r\nthreats by the unions and decisions made surrounding the\r\npotential strike could be a harbinger of whether this\r\ngovernment will stand for reform or cave in to union\r\npressure on a variety of matters. \r\n\r\nENTWISTLE<\/pre>\n","protected":false},"excerpt":{"rendered":"<p> [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,2187,1,2375],"tags":[],"class_list":["post-87968","post","type-post","status-publish","format-standard","hentry","category-colombotelegraph","category-most-popular","category-news","category-stories"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>WikiLeaks: JVP Electricity Strike Could Delay Reforms - US - Colombo Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WikiLeaks: JVP Electricity Strike Could Delay Reforms - US - Colombo Telegraph\" \/>\n<meta property=\"og:description\" content=\"[&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/\" \/>\n<meta property=\"og:site_name\" content=\"Colombo Telegraph\" \/>\n<meta property=\"article:published_time\" content=\"2013-05-21T19:45:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2013-05-29T06:16:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha-.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"200\" \/>\n\t<meta property=\"og:image:height\" content=\"200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"COLOMBO TELEGRAPH\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"COLOMBO TELEGRAPH\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/\",\"url\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/\",\"name\":\"WikiLeaks: JVP Electricity Strike Could Delay Reforms - US - Colombo Telegraph\",\"isPartOf\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha-.jpg\",\"datePublished\":\"2013-05-21T19:45:20+00:00\",\"dateModified\":\"2013-05-29T06:16:17+00:00\",\"author\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/#\/schema\/person\/9db3d0cfcfa59e1997e3c3524d454cb3\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/#primaryimage\",\"url\":\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha-.jpg\",\"contentUrl\":\"https:\/\/www.colombotelegraph.com\/wp-content\/uploads\/2013\/05\/lal-kantha-.jpg\",\"width\":\"200\",\"height\":\"200\",\"caption\":\"K.D.Lalkantha - Head of the JVP unions\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.colombotelegraph.com\/index.php\/wikileaks-jvp-electricity-strike-could-delay-reforms-us\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.colombotelegraph.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"WikiLeaks: JVP Electricity Strike Could Delay Reforms &#8211; 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