CEB engineers flag irregularities in energy reforms

Wednesday, 22 October 2025 00:04 -     - {{hitsCtrl.values.hits}}


 

  • Allege Govt. approved 10-page document outlining CEB assets, liabilities, and operations transfers to new successor companies without stakeholder consultation
  • Point to violations of Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025 and international best practices 

The Ceylon Electricity Board Engineers’ Union (CEBEU) has written to the Sectoral Oversight Committee on Infrastructure and Strategic Development, requesting immediate intervention in what it describes as serious legal and procedural violations in the ongoing electricity sector reform process.

In its letter dated 18 October, the union said the reforms are being carried out in violation of the Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025, as well as international best practices. 

“While we have consistently supported reforms that are transparent, technically sound, and beneficial to the public, the current process has deviated from the principles of good governance, institutional accountability, and statutory compliance,” the union stated.

At the centre of the dispute is the Preliminary Transfer Plan (PTP), the document outlining how the assets, liabilities, and operations of the CEB are to be transferred to new successor companies after the utility’s unbundling. 

According to the CEBEU, the draft PTP circulated by the Ministry of Energy on 25 September was “a mere 10-page document” shared only among selected management officials, giving employees and trade unions just four working days to provide comments.

The union further alleges that the same draft was sent to the Ministry of Finance for approval on the day it was issued for internal comments and was subsequently approved by the Minister of Finance on 11 October. 

“We were shocked to learn that the same draft was approved without validating its compliance with the provisions of the Act,” the CEBEU said.

The union raised several legal concerns, claiming that the draft PTP fails to meet key statutory requirements, including the preparation of the plan under formal policy directions from the Minister of Energy as required by Section 18.2 of the Act. 

It also pointed out that only four of the six successor companies have been incorporated, with no provisions made for the entities responsible for CEB’s pension and provident funds or the residual company.

The CEBEU said the plan lacks critical financial and operational details, including the allocation of assets and liabilities, valuation of CEB-owned properties, financial plans for successor companies, and mechanisms to ensure continuity of service. 

It also warned that no framework has been outlined for employee transfers or inter-company pension fund contributions.

“There has been no stakeholder consultation with employees or unions on the draft PTP. If implemented in its present form, the entire electricity sector could face collapse, not because of the CEB workforce, but due to the Ministry’s reckless and irresponsible handling of the process,” the union cautioned.

The letter urges the Oversight Committee to review the reform process, summon relevant officials for clarification, and ensure that implementation is consistent with the law, established procedures, and principles of transparency and accountability. 

The CEBEU also requested an opportunity to present its technical observations and proposals directly to the Committee, warning that “only through proper dialogue and consultation can we prevent future legal and operational challenges once the new entities take over.”

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