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Message: <blockquote data-quote="monson" data-source="post: 30226686" data-attributes="member: 30005">Sri Lanka’s power sector has long been a focal point of political, economic, and social debate, with the State-run Ceylon Electricity Board (CEB) often at the centre of controversy. The recent restructuring efforts of the CEB, aimed at improving efficiency and sustainability, have been thrown into uncertainty as the new Government, which came to power following the recent elections, appears to be rethinking the reforms introduced by the previous administration.As reliably learnt by The Sunday Morning, there are active discussions within the CEB’s top ranks about reversing the legal developments that were initiated under the previous Government, including rolling back key provisions of the new Sri Lanka Electricity Act No.36 of 2024. As a result, the restructuring process, which was expected to transform the CEB into a series of independent corporate entities handling generation, transmission, and distribution, now hangs in the balance.While no final decisions have been made, these discussions signal potential resistance to the restructuring programme, which had been viewed as a necessary step to reform the country’s struggling power sector. The debate around these reforms raises important questions about the future of Sri Lanka’s energy policy and the Government’s commitment to improving the financial and operational sustainability of the CEB.Background The new Sri Lanka Electricity Act was passed in Parliament earlier this year with amendments, repealing the Ceylon Electricity Board Act No.17 of 1969 and the Sri Lanka Electricity Act No.20 of 2009. The primary aim of this law was to dismantle the monolithic structure of the CEB, breaking it into independent corporate entities responsible for generation, transmission, distribution, trade, supply, and procurement.This move was seen as a significant step towards reducing inefficiencies, improving competition in the energy market, and attracting private sector investment. The World Bank and the Asian Development Bank (ADB) both supported the restructuring initiative as part of broader reforms aimed at stabilising Sri Lanka’s power sector.Under the new law, several critical steps were mandated, including the establishment of the National System Operator (NSO) and the National Electricity Advisory Council (NEAC), both of which would play vital roles in overseeing the management and regulation of the country’s electricity grid. The NSO, a Government-owned limited company, was tasked with managing the national grid and optimising power generation. The NEAC, meanwhile, was created to advise on national electricity policy, industry reforms, and the development of a competitive market structure.The restructuring process was further enhanced by a $ 100 million policy-based loan from the ADB, designed to support power sector reforms and ensure the financial sustainability of the CEB. However, the restructuring plan faced legal challenges from various stakeholders, who argued that certain provisions in the law would negatively impact workers and consumers. The Supreme Court ruled that several parts of the law could only be implemented once key plans, such as the National Electricity Policy and the Long-Term Power System Development Plan, were in place.New Govt.’s stance on reformsWith a new administration now in place, the direction of these reforms is far from certain. A senior CEB official, speaking to The Sunday Morning on condition of anonymity, revealed that high-ranking officials within the CEB were engaged in discussions about reversing some of the legal changes made by the previous Government.“The new leadership is reconsidering the restructuring framework laid out in the recent Electricity Act. There is a strong sentiment that the reforms, especially those that fragment the CEB, may not be in the best interest of the country or the power sector,” the official said.These discussions, which are still in the preliminary stages, have not resulted in any formal decisions yet. However, the prospect of a reversal is likely to generate significant debate, given the immense pressure on the CEB to modernise its operations and reduce its financial losses.The official further added: “The new administration believes that the restructuring could compromise national energy security and reduce the Government’s control over critical infrastructure. There’s a belief that the CEB, despite its flaws, needs to remain a unified entity under State control.”NSO/NEAC: No changes yetDespite these discussions, no changes have been made to the key appointments at the NSO or the NEAC yet. The former Chairman of the CEB was appointed as the Chairman of the NSO, with a board comprising officials from the Ministry of Power, the Treasury, and independent experts. Similarly, the former Secretary to the Ministry of Power was appointed as the Chairman of the NEAC.These appointments are in line with the provisions of the Sri Lanka Electricity Act, and as of now, they have not been revised or challenged. The NSO continues to oversee real-time operations of the national grid, while the NEAC remains focused on advising the Ministry on long-term energy policy.However, the uncertainty surrounding the broader restructuring process has raised concerns among energy experts and industry stakeholders. They worry that any reversal of the reforms could delay critical projects, including the integration of renewable energy into the national grid and the implementation of cost-reflective tariffs aimed at improving the financial health of the CEB.Energy securityThe CEB’s financial sustainability has been a long-standing issue. The utility is heavily indebted and its ability to maintain uninterrupted power supply has been challenged by operational inefficiencies, outdated infrastructure, and a reliance on costly fossil fuel imports.The reforms initiated under the previous Government, particularly the restructuring of the CEB, were seen as essential to addressing these challenges. ADB Principal Energy Specialist Jaimes Kolantharaj noted that the reforms were designed to create a competitive energy market and modernise the power grid, making it more resilient and capable of integrating renewable energy.“This programme was not just about financial sustainability; it was about ensuring a reliable, affordable electricity supply and transitioning Sri Lanka toward clean energy,” Kolantharaj said in a recent statement.A reversal of these reforms, however, could jeopardise these goals. Critics argue that keeping the CEB intact as a single entity may perpetuate the inefficiencies that have plagued the utility for decades. Furthermore, it could undermine efforts to attract private investment in the power sector, particularly in renewable energy projects that are crucial for Sri Lanka’s long-term energy security.While discussions are ongoing and no formal decisions have been made, it is clear that the new administration is weighing its options carefully. As the CEB official noted: “Whatever decision is taken, it must be one that ensures both energy security and financial sustainability. We cannot afford to get this wrong.”- <a href="https://www.themorning.lk/articles/8dweEJp1ZsitjB3ojul4" target="_blank">https://www.themorning.lk/articles/8dweEJp1ZsitjB3ojul4</a>CEB එකත් එක්ක business කරන company 2 ක ලොක්කෝ CEB Chairman (renewable energy වලට විරුද්ධ), CEB Vice Chairman  (NPP ගොට්ටෙක් ) කරපු නිසා CEB Engineers’ Union තක්කඩි ටිකත් සතුටෙන් පිනයයි  <img src="/styles/default/xenforo/smilies/default/lol.gif"  class="smilie" loading="lazy" alt=":lol:" title="LOL    :lol:" data-shortname=":lol:" /><a href="https://www.dailymirror.lk/breaking-news/CEBEU-optimistic-on-averting-looming-power-crisis-in-2026-2027/108-293201" target="_blank">https://www.dailymirror.lk/breaking-news/CEBEU-optimistic-on-averting-looming-power-crisis-in-2026-2027/108-293201</a></blockquote>

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