Govt. gazettes VRS for CEB employees

Monday, 1 September 2025 06:37 - - {{hitsCtrl.values.hits}}

Permanent employees with over 10 years’ service entitled to two months’ salary for each completed service year
In addition, they will receive 1.5 months’ salary for each year of service foregone
Minimum payment under this category Rs. 900,000, and maximum capped at Rs. 5 m
Those below 10 years of service will receive five months of salary for each year of service
Non-permanent and contractual employees also eligible for VRS of two months’ salary for each year of service

The Government has introduced a new voluntary retirement scheme (VRS) for employees of the Ceylon Electricity Board (CEB) who do not wish to transfer to the successor company.

The move follows the approval of regulations under Section 50 of the Sri Lanka Electricity Act, No. 36 of 2024. The Extraordinary Gazette dated 26 August 2025 was issued by Energy Minister Kumara Jayakody, setting out the terms and conditions of the scheme.

According to the regulations, permanent employees with over 10 years of service will be entitled to compensation based on two months of salary for each year of completed service. They will also receive one and a half months’ salary for each year of service foregone. The minimum payment under this category will be Rs. 900,000, and the maximum will be capped at Rs. 5 million.

Those with less than 10 years of service will receive compensation calculated as five months of salary for each year of service. In this case, there will be no payment for years foregone.

Non-permanent and contractual employees are also eligible for the VRS. Their benefits will be based on two months’ salary for each year of service, with a minimum payment equal to one year’s salary. The formula for calculating the compensation will use the daily wage multiplied by 22 and adjusted for the number of months worked.

The salary used in the calculation of compensation will be the same salary used to determine Provident Fund contributions. Interim allowances and variable payments will not be included in the calculation.

The regulations clearly state that employees who are facing disciplinary action or inquiries before a tribunal will not be allowed to take part in the scheme. Any dues or outstanding payments owed by an employee to the CEB will be deducted from the final compensation.

Employees who accept the package will not be allowed to seek future employment with any of the successor companies of the CEB.

An official application form has been introduced as part of the scheme. Employees will be required to provide details such as their name, national identity card number, years of service, outstanding dues, and a declaration confirming the accuracy of the information provided.

The VRS is part of a broader restructuring process of the CEB and is aimed at ensuring an orderly transition for both employees and institutions.