By: Staff Writer
March 12, Colombo (LNW): Sri Lanka’s electricity sector has entered a turbulent phase as the restructuring of the Ceylon Electricity Board (CEB) into six state-owned companies gathers momentum under the economic reform program negotiated with the International Monetary Fund (IMF). While the government presents the move as a necessary modernization effort to stabilize the power sector, engineers warn that confusion over employee roles threatens operational stability.
The immediate concern stems from a complaint by the Ceylon Electricity Board Engineers’ Union (CEBEU), which says many staff members have not yet received formal appointment letters confirming their positions within the newly created companies.
According to the union, although the restructuring has formally dissolved the traditional CEB structure, thousands of employees who previously worked under the state utility remain uncertain about their employment status.
Some workers have been issued “assignation letters,” but the union says that these documents merely indicate the institution to which an employee has been temporarily attached and do not define job responsibilities, authority, reporting lines, or employment conditions.
Engineers warn that the absence of a clear legal and administrative framework has created operational confusion. In some cases, employees are reluctant to carry out certain functions without written confirmation of authority, fearing legal or disciplinary consequences in the future.
Despite these concerns, the union says staff involved in essential services including electricity generation, transmission, and distribution continue to work to maintain power supply. However, engineers caution that restoration work after breakdowns could take longer due to the uncertainty.
The restructuring program is part of Sri Lanka’s broader economic recovery plan under the IMF bailout agreement signed after the country’s 2022 financial crisis. One of the key reform conditions is improving the financial viability and governance of major state-owned enterprises.
Supporters of the reform argue that unbundling the CEB into separate generation, transmission, and distribution companies could introduce transparency, improve efficiency, and reduce political interference. Advocates say the move may also encourage investment in renewable energy and modern infrastructure.
Critics, however, warn that poorly managed restructuring could disrupt operations and undermine worker morale. Trade unions also fear the move could pave the way for partial privatization in the future.
Adding a layer of political irony is the fact that the current reform is being implemented under the government led by the National People’s Power (NPP), whose leading component, the Janatha Vimukthi Peramuna (JVP), historically opposed similar reforms when proposed by previous administrations.
Analysts say the current standoff highlights the challenge of balancing economic reforms with institutional stability. Possible solutions include issuing immediate formal appointments to all employees, establishing clear governance frameworks for the new companies, and initiating structured dialogue between the government and unions.
Without such measures, the electricity sector risks becoming another flashpoint in Sri Lanka’s difficult path toward economic recovery.