Amid IMF mandates and government restructuring, the Ceylon Electricity Board faces significant downsizing and privatization efforts that are projected to lead to mass job losses, wage cuts, and a reduction in worker protections. This event underscores the broader alliance between austerity policies and privatization strategies that undermine labor rights and public accountability.

The restructuring of the state‐owned Ceylon Electricity Board, spurred by IMF austerity measures and state-led reforms, is leading to significant job cuts, wage reductions, and a weakened stance on labor rights. These changes serve broader neoliberal interests by paving the way for future privatization, compromising public accountability and workers' welfare.

Unions representing the state-run Ceylon Electricity Board have vowed to defeat a new electricity reform bill that aims to restructure CEB by splitting it into multiple entities and opening the door for foreign companies. This protest underscores concerns over deteriorating labor rights and potential economic collaboration that may undermine national control over critical infrastructure.

Ceylon Electricity Board management has been accused of targeting and punishing workers involved in protests against the privatisation of the state‐owned utility, reflecting significant issues in labor rights and alignment with repressive economic reforms driven by government and IMF pressures.

A Colombo District Court ruling effectively prohibited Ceylon Electricity Board workers from taking industrial action, while management enforced disciplinary measures. This repressive action undermines workers' rights and is indicative of authoritarian practices in labor relations.