Sri Lanka’s electricity sector has entered a historic transition as the long standing Ceylon Electricity Board has been replaced by six fully government owned companies, raising major questions about how power will be generated, managed and delivered to consumers in the years ahead.
Sri Lanka’s electricity sector has undergone one of the most significant structural reforms in its history with the abolition of the Ceylon Electricity Board, an institution that managed the country’s electricity supply for nearly six decades. The restructuring officially came into effect on March 9, introducing a new corporate structure designed to manage electricity generation, transmission and distribution more efficiently.
Under the new framework, the former Ceylon Electricity Board has been replaced by six separate companies that remain fully owned by the government. These entities are Electricity Generation Lanka Private Company, National Transmission Network Service Providers Private Company, National System Operator Private Company, Electricity Distribution Lanka Private Company, Employees Fund Private Company and Energy Ventures Lanka Private Company. Each company has been assigned a specific operational role within the electricity sector in order to improve management and accountability.
Restructuring of the electricity authority now completed
Energy Minister Kumara Jayakody stated that the restructuring process of the national electricity authority has now been fully completed with the establishment of the new companies. According to him, the changes were necessary to address both present challenges and future demands within the power sector.
The minister emphasized that although the structure has changed, the companies remain entirely under government ownership. He explained that the reform was carried out to strengthen the long term stability of the country’s electricity system while improving operational efficiency and planning capacity.
Pubudu Niroshan Hadigalle, head of the CEB Transformation Task Force, explained that the main operational responsibilities of the old electricity board have now been separated into specialized organizations. The electricity generation plants, national transmission network, system control operations and electricity distribution zones will now be managed by different companies operating under the same government umbrella.
He further explained that an additional company has been created to manage the pension and provident funds of employees who previously worked under the electricity board. Another company has been established to handle smaller operational and investment related tasks connected to energy sector development.
Electricity distribution responsibilities explained
According to the restructuring plan, the electricity distribution duties that were previously handled directly by the electricity board will now be transferred to Electricity Distribution Lanka Private Limited. This company will be responsible for supplying electricity to households, businesses and industries across the country.
Officials say the purpose of dividing responsibilities among different companies is to create a clearer operational structure. By separating generation, transmission and distribution activities, the authorities hope to introduce better financial discipline and improved operational performance across the electricity industry.
Public services expected to remain unchanged
Despite the structural changes, government officials insist that electricity consumers will not experience immediate disruptions or changes in their day to day services. Professor Udayanga Hemapala, Secretary to the Ministry of Energy, explained that the public will continue to access electricity services in exactly the same way as before.
He stated that while the leadership structure of the electricity sector has been reorganized, the operational systems beneath it remain unchanged. Consumers will still be able to report power outages through existing hotline numbers and obtain services such as electricity connections and bill payments through the same channels they previously used.
According to officials, the restructuring has been designed primarily as an administrative reform rather than a change to customer facing services.
Will consumers see real benefits?
Supporters of the reform believe the restructuring will bring long term benefits to electricity consumers. According to Pubudu Niroshan Hadigalle, the transformation of the electricity board is intended to achieve three major goals.
The first objective is to increase efficiency in the management of power generation and distribution. The second goal is to improve transparency in financial and operational decisions within the electricity sector. The third objective is to encourage greater competitiveness and innovation in the energy industry.
Officials argue that these improvements will eventually make it possible to supply electricity at more affordable prices while maintaining stable power supply across the country.
Engineers warn about operational challenges
However, the restructuring has also created uncertainty among employees within the electricity sector. The CEB Engineers Association has warned that the ongoing transition has caused confusion among workers regarding their employment status and responsibilities.
According to the association, many employees have not yet received official appointment letters or clear documentation from the new companies. Some workers reportedly face administrative issues with the documents issued to them.
Despite these concerns, the association noted that engineers and technical staff continue to maintain essential electricity infrastructure including power plants and transmission systems, often working under difficult conditions.
At the same time, the association cautioned that certain operational activities could be affected during the transition period and that some electricity disruptions may take longer than usual to repair.
Electricity reform law passed amid protests
The legal basis for these reforms was created when the Speaker signed the Sri Lanka Electricity Amendment Bill on August 18 last year. The amendment to the Sri Lanka Electricity Act introduced wide ranging changes aimed at reforming electricity generation, transmission and distribution within the country.
These reforms were strongly opposed by several trade unions and worker organizations who feared that the restructuring could weaken job security or open the door to privatization in the future.
During demonstrations held last year, labor activists warned that the changes could have serious consequences for workers in the electricity industry.
As protests intensified, the government issued a gazette notification declaring electricity supply related services as essential services. This ensured that electricity generation and distribution would continue uninterrupted despite industrial action.
Deputy Minister of Labor Mahinda Jayasinghe defended the government’s position, stating that the objective of the reform was to protect and strengthen the electricity sector rather than dismantle it.
Evolution of electricity in Sri Lanka
The history of electricity in Sri Lanka stretches back more than a century. According to official records, the first encounter with electric lighting in the country occurred in 1882 when the ship SS Helios arrived at the Colombo port with electric lights installed.
In 1890 the first electric bulb in Sri Lanka was lit using a diesel generator at the Bristol Hotel in Colombo Fort. During the colonial period electricity gradually expanded to plantations and urban centers.
Engineer D J Wimalasurendra later identified the hydroelectric potential of Sri Lanka’s central highlands in 1918, laying the foundation for the development of the country’s hydro power industry.
One of the major milestones in electricity generation was the commissioning of the Laxapana Power Plant in 1950. Over the following decades numerous hydroelectric and thermal power projects expanded the national electricity grid.
The Ceylon Electricity Board itself was established on November 1, 1969 under Act No. 17 of 1969, creating a unified authority responsible for electricity generation and supply across the island.
Later, the Public Utilities Commission of Sri Lanka was established under Act No. 35 of 2002 to regulate the electricity industry and several other public utility sectors.
With the latest restructuring, Sri Lanka’s electricity sector now enters a new chapter marked by institutional reform and structural transformation.
