The NPP Government’s decision to declare the electricity sector an essential service marks a dramatic escalation in its handling of the Ceylon Electricity Board (CEB) restructuring, revealing deep fractures between reform ambitions and ground realities.
Officially, the unbundling of the CEB into four specialised State-owned companies is intended to modernise Sri Lanka’s power sector, improve efficiency, and align with IMF-backed reform commitments. Unofficially, the process has stalled, leaving thousands of employees in professional and financial limbo while the Government tightens legal controls to prevent industrial action.
The restructuring hinges on dissolving the existing CEB and transferring its assets, staff, and operations to newly created entities responsible for system operation, transmission, generation, and distribution. Parallel to this is a Voluntary Retirement Scheme designed to reduce staffing levels—an explicit requirement of international lenders.
However, the execution has been plagued by delays. Repeatedly postponed “appointed dates,” uncertainty over gazette notifications, and unresolved policy instruments have created a vacuum where neither the old structure nor the new one fully exists. Employees who committed to the VRS did so on the basis of official timelines that have since collapsed.
The human cost is becoming increasingly visible. Workers report selling vehicles and property at undervalued prices in anticipation of compensation that has yet to materialise. Overseas job offers have been withdrawn due to uncertainty over release dates, while immigration documents, medical reports, and police clearances are expiring unused. Families have been split across borders, surgeries postponed, and professional examinations deferred.
Trade unions argue that this is no longer a matter of administrative delay but a systemic failure with humanitarian consequences. They accuse both the Ministry of Power and Energy and CEB management of withholding clear information while proceeding selectively with elements of the reform.
Meanwhile, unresolved technical and legal issues continue to mount. The Electricity and Tariff Policy—essential for pricing, cost recovery, and investor confidence—remains incomplete after attracting strong opposition during public consultations. Renewable energy developers warn that the proposed framework could destabilise existing investments, particularly rooftop solar projects.
Equally concerning is the absence of operational agreements between the successor companies. Without signed power purchase and sales contracts, the unbundled entities may be legally established but functionally paralysed.
Against this backdrop, the declaration of electricity as an essential service is seen by many unions as a pre-emptive strike against dissent rather than a solution to the crisis. While the Government insists the measure is necessary to protect the public, critics argue it exposes a governance approach that prioritises control over consensus.
As the NPP Government presses ahead, the CEB restructuring risks becoming a case study in reform without readiness where emergency laws replace dialogue, and uncertainty becomes the most powerful force shaping Sri Lanka’s energy future.
