CEB Rs. 20 b debenture liability transferred to Electricity Distribution Lanka

• CEB says operations ceased from yesterday; assets, liabilities and functions transferred to six new entities 
• Debentures with 9.35% coupon mature on 15 April 2026
• CEOs appointed to three of six entities; over 2,000 CEB employees accept VRS

The Ceylon Electricity Board (CEB) yesterday said its listed Rs. 20 billion debenture liability has been transferred to Electricity Distribution Lanka Ltd., following the restructuring of the power sector under the Sri Lanka Electricity Act, No. 36 of 2024.

The transfer forms part of the implementation of the new Electricity Act and a subsequent amendment brought into force through an Extraordinary Gazette issued by the Energy Minister.

An Extraordinary Gazette Notification (No. 2478/41) issued on 5 March declared 9 March 2026 as the ‘Appointed Date’ from which the restructuring took effect.

“Accordingly, the CEB has ceased its operations and the following six companies have commenced operations by taking over the functions of CEB,” the CEB said in a statement.

The entities assuming the functions of the former Board are National System Operator Ltd., Electricity Generation Lanka Ltd., National Transmission Network Service Providers Ltd., Electricity Distribution Lanka Ltd., Energy Ventures Lanka Ltd., and CEB Employees Fund Ltd. The CEB said all assets and liabilities of the former Board have been transferred to these companies under the Preliminary Transfer Plan approved by the Cabinet of Ministers.

Under the restructuring, the Board said the debenture liability of the former CEB has been assigned to Electricity Distribution Lanka Ltd.

The CEB in 2021 raised up to Rs. 20 billion through listed debentures on the Colombo Stock Exchange (CSE), offering a 9.35% coupon rate, making it one of the few State-owned enterprises (SOE) to access the capital market through corporate debt. The debentures mature on 15 April 2026.

Historically, only a limited number of State-owned or State-controlled entities have tapped the CSE for capital. Sri Lanka Telecom PLC became the first major State enterprise to access the market through an equity listing in 1997, while later listings included People’s Leasing & Finance PLC in 2011 and People’s Insurance PLC in 2012 through subsidiaries of State-owned People’s Bank.

The CEB debenture issue therefore marked a rare instance of a core utility SOE raising funds directly from the domestic capital market.

The latest restructuring formally transfers that liability to the newly created Electricity Distribution Lanka entity as part of the broader unbundling of the power sector under the Electricity Act.

Three Chief Executive Officers have been appointed to companies created under the restructuring of the electricity sector.

Engineer N.G. Saliya Panditharatne has been appointed CEO of Lanka Electricity Generation Lanka Ltd., while Engineer N.S. Wettasinghe will lead National Transmission Network Service Providers Ltd. Engineer K.S.I. Kumara has been named CEO of Electricity Distribution Lanka Ltd. The appointments were made on 6 February.

Two other entities formed under the restructuring — CEB Employees Fund Ltd., and Energy Ventures Lanka Ltd. — are yet to appoint CEOs.

CEB Transformation Task Force Head Pubudu Niroshan Hedigalla said 2,153 employees have applied for the voluntary retirement scheme.

He said no staff will lose their jobs after the restructuring and that existing benefits will remain unchanged. According to him, electricity services will continue as usual, with the same emergency numbers and payment systems. Consumers will now deal with Electricity Distribution Lanka Ltd., instead of the CEB.

Hedigalla said the restructuring aims to improve efficiency, transparency, and competition, while gradually lowering electricity generation costs and tariffs.