Thursday Oct 09, 2025
Thursday Oct 09, 2025
Thursday, 9 October 2025 04:12 - - {{hitsCtrl.values.hits}}
The Ceylon Electricity Board Engineers’ Union (CEBEU) has called on Parliament’s Sectoral Oversight Committee on Infrastructure and Strategic Development to intervene in the ongoing electricity sector reforms, alleging that the process is being carried out in violation of the Sri Lanka Electricity Act No. 36 of 2024 and its 2025 amendment.
In a detailed submission to the Committee, the union warned that the reforms, including employee assignations, company restructuring, and asset transfers, are proceeding without a coherent strategic plan, statutory compliance, or adequate stakeholder consultation. The CEBEU said the process risks undermining institutional stability, employee trust, and national energy security unless corrective action and parliamentary oversight are urgently introduced.
The CEBEU letter in full is as follows:
Request for the intervention of the Sectoral Oversight Committee on Infrastructure and Strategic Development regarding the ongoing electricity sector reforms
The Ceylon Electricity Board Engineers’ Union (CEBEU), as the main representative body of engineering professionals within the Ceylon Electricity Board (CEB) and a key stakeholder in the electricity sector, wishes to bring to the attention of the Hon. Members of the Sectoral Oversight Committee on Infrastructure and Strategic Development a series of serious concerns regarding how the ongoing electricity sector reforms are currently being implemented in violation of the law, specifically the Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025.
While CEBEU has consistently extended its professional support toward a reform process that is transparent, technically sound, and beneficial to the public, we regret to note that the current process has deviated from the principles of good governance, institutional accountability, and statutory compliance envisioned under the Act.
We wish to highlight a few major concerns (but not limited to) as follows.
01. Absence of a coherent strategic plan
The reform program is proceeding in a fragmented and ad-hoc manner, without an approved and transparent strategic roadmap. Fundamental decisions affecting national energy security, public finance, and institutional restructuring are being taken without due technical consultation or feasibility validation.
02. Issuance of illegal Assignation Letters
It should be noted that the GM, CEB has been instructed to issue Assignation Letters to employees, even before the establishment and legal constitution of the successor companies, and to publish the terms and conditions of the VRS, under the provisions of the Act. Such actions have disregarded the due process outlined for employee assignation and consent. The premature issuance of these letters not only violates statutory procedure but also creates serious confusion and unrest among employees, undermining both the credibility of the reform process and the authority of the law itself.
03. Inadequacy of the Draft Preliminary Transfer Plan and HR Policy
The draft Preliminary Transfer Plan (PTP) and the accompanying draft Human Resource Policy documents circulated by the Power Sector Reform Secretariat are substantially inadequate and incomplete. These documents fail to meet the requirements prescribed under the Sri Lanka Electricity Act No. 36 of 2024, particularly those concerning the clarity of asset, liability, and human resource transfers, as well as the continuity of employee rights and institutional functions.
The absence of comprehensive, technically vetted, and legally compliant plans poses serious risks to the orderly implementation of the reforms. The preparation of these documents without adequate stakeholder consultation, supporting studies, or approval mechanisms undermines both the credibility and legality of the reform process.
04. Undermining the authority of the Board of Directors of the Successor Companies
The Minister has now appointed the Directors for the Successor Companies, and consistent with the primary objective of the Act, these companies should operate with independence and autonomy. However, all the reform committees have been appointed in an ad hoc manner, including members of PSRS in the committees, even for the responsibilities that are to be fulfilled by the Boards of Directors of the Successor Companies, in which PSRS also acts as the supervising entity. This dual role undermines independence and objectivity, conflicting with the principles of impartial oversight expected during this process.
05. Erosion of employee trust and institutional stability
The absence of clear communication, along with concerns about unequal treatment and the selective extension of retirement ages, in violation of Gazette No. 2309/04 of 5 December 2022, has generated uncertainty and unrest among employees. Such practices undermine public trust and risk destabilising a sector that is vital to the economy.
06. Non-Establishment of the Statutory Company for Pension and Provident Funds
Despite the clear requirement under the Act to establish a dedicated company for the management of the existing Pension and Provident Funds of the Ceylon Electricity Board, no such legal entity has yet been created. The absence of this institution leaves a critical vacuum in safeguarding the retirement benefits and financial security of over 25,000 employees and pensioners. This omission not only violates the legislative intent of the Act but also raises serious risks of mismanagement, legal disputes, and loss of employee confidence during the transition period. Immediate action is therefore essential to ensure that the statutory company is established, capitalised, and governed under proper legal and fiduciary frameworks before any employee transfers or assignations take place.
07. Unrealistic and frequently missed deadlines
The reform process has been marked by a series of unrealistic timelines and repeatedly missed deadlines set by the Ministry of Energy itself. Critical milestones—including the preparation of the Preliminary Transfer Plan (PTP), the establishment of successor companies, and the finalisation of employee assignation procedures—have been delayed far beyond the announced schedules. These recurring lapses have created serious doubts regarding the administrative capacity and sincerity of the process. Moreover, the tendency to hastily issue new deadlines without addressing the underlying institutional or technical bottlenecks has further eroded stakeholder confidence, giving the impression that the reforms are being driven by short-term political pressures rather than a structured, strategic roadmap envisioned under the Act.
08. Lack of transparency and public accountability
The reform process lacks an effective mechanism for stakeholder consultation and parliamentary scrutiny. Information on the progress of the reform, including methods and people involved, its financial implications, and institutional design, is not being disclosed adequately to either the public or the employees who will ultimately implement these reforms.
In view of the above, we respectfully request that the Sectoral Oversight Committee on Infrastructure and Strategic Development urgently review the ongoing electricity sector reform process, summon the relevant officials for clarification, and ensure that the reforms are implemented in strict accordance with the law, established procedures, and the principles of transparency, equity, and accountability.
We further request that the Committee provide an opportunity for the Ceylon Electricity Board Engineers’ Union (CEBEU) to present its professional observations and proposals before the Committee, so that Parliament is fully apprised of the practical and legal issues currently threatening the success of this nationally significant reform program.
Furthermore, we believe that only through proper dialogue and consultation can we effectively address the pending issues in PTP and the entire transition process, ensuring that there is no room for error, ambiguity, or future legal and operational challenges in its implementation, after the appointed date.
Please recognise that all these efforts are made by CEBEU in good faith and with genuine intent to guide the reform process in the right direction.
