A damning audit has uncovered billions in unapproved payments at Sri Lanka’s power utility, raising fresh questions about accountability, public finance discipline, and the true cost of state-sector mismanagement.
Sri Lanka’s state-owned power utility, the Ceylon Electricity Board, has come under intense scrutiny following serious findings in the Auditor General’s annual report, which reveal extensive financial irregularities linked to employee payments and loan subsidies. According to the report, the CEB disbursed Rs. 1,060.02 million in employee allowances during 2024 without obtaining approval from the relevant government oversight authorities, a move that has triggered renewed concerns about governance and fiscal accountability.
The report further states that these payments were not included in the list of allowances formally approved by the Cabinet, raising questions about how such large sums were released outside established procedures. At a time when Sri Lanka remains under international economic monitoring, the findings add pressure on state institutions to demonstrate transparency and adherence to financial regulations.
Audit findings show that the CEB bypassed mandatory approval mechanisms, including clearance from the Salaries and Personnel Commission and the Department of Management Services, before issuing the allowance payments. This has highlighted long-standing weaknesses in public sector financial management, particularly within key state-owned enterprises that play a central role in national infrastructure and economic stability.
In addition to the unapproved allowances, the Auditor General revealed that Rs. 191.3 million was paid as retention allowances to 601 officers who were already eligible for professional allowances. This directly contradicts an existing Cabinet decision that bars the payment of professional allowances to employees receiving retention benefits, pointing to a systemic disregard for approved policy frameworks.
Even more concerning are the findings related to employee housing loans. The report notes that nearly two-thirds of the interest on property loans taken by CEB employees between 2013 and 2024, amounting to Rs. 19,384.8 million, was paid without Treasury approval. The scale and duration of these payments suggest a long-term pattern of unauthorized financial decisions that may have placed an additional burden on public funds.
For international observers and lenders, the report raises broader concerns about transparency and governance in Sri Lanka’s state-owned enterprises. As the country works to rebuild its economy, restore investor confidence, and meet reform commitments, the CEB findings are likely to fuel calls for tighter oversight, structural reform, and stronger accountability across the public sector.
