April 03, Colombo (LNW): The government is taking steps to amend the Electricity Act passed in 2024, marking a departure from the previous administration’s IMF-backed energy sector reforms.
The move reflects a shift in policy under the leadership of President Anura Kumara Dissanayake, who has been critical of the economic restructuring measures tied to the country’s debt recovery programme.
The International Monetary Fund (IMF)-supported reform framework was designed to stabilise Sri Lanka’s economy, ensure debt sustainability, and modernise the energy sector.
One of its key components was the gradual privatisation of the state-run Ceylon Electricity Board (CEB) to improve efficiency and financial viability.
However, the new administration has expressed reservations about these plans, leading to a reassessment of the legal framework governing the electricity sector.
In response, the Ministry of Power has formed a specialist committee, subject to Cabinet approval, to review the existing Electricity Act and recommend amendments.
The committee has sought input from a broad spectrum of stakeholders, including industry experts, power sector representatives, and development agencies funding energy projects, according to official documents.
A total of 59 stakeholders have submitted written proposals, with additional consultations being held through knowledge-sharing sessions and discussions with those advocating for restructuring.
Following a thorough review, the committee has presented its final report outlining proposed changes to the legislation. The Cabinet of Ministers has subsequently approved a resolution to draft a bill based on these recommendations.
The anticipated amendments are expected to influence the restructuring of the CEB, affecting its role in power generation, transmission, and distribution.
Whilst the previous government’s reforms aimed at increasing transparency, efficiency, and private sector involvement, the Dissanayake administration appears to be prioritising a different approach, potentially curbing or modifying privatisation efforts.
Sri Lanka remains committed to broader state enterprise reforms under its IMF agreement, but the extent to which the revised Electricity Act will align with these commitments remains to be seen.
