By: Staff Writer
January 05, Colombo (LNW): The Sri Lankan government has decided to revisit and amend the Sri Lanka Electricity Act No. 36 of 2024, which came into effect on June 27, 2024.
The act, aimed at restructuring the electricity sector, has faced criticism for potentially failing to achieve its intended objectives and for possibly imposing additional burdens on both the industry and consumers.
Key Objectives and Controversies
The law primarily seeks to restructure the state-run Ceylon Electricity Board (CEB) into 14 independent corporate entities.
These entities would separately handle electricity generation, transmission, distribution, trade, supply, and procurement.
However, multiple stakeholders have raised concerns about the feasibility of this restructuring, questioning its alignment with the goals of creating a secure and sustainable electricity sector.
The Supreme Court intervened after the bill was contested, mandating that several provisions of the act would only take effect after the preparation and approval of crucial plans, including:the Preliminary Transfer Plan,the National Electricity Policy and National Tariff Policy, the Annual Power Procurement Plan and t he Long-Term Power System Development Plan
Cabinet’s Response and Committee Formation
In response to these concerns, the Cabinet of Ministers has approved a proposal by the Minister of Energy to appoint a 10-member committee to review the act and recommend amendments.
This initiative aims to address stakeholder concerns and ensure that the act supports a sustainable electricity sector without privatizing current assets.
The committee, chaired by Udayanga Hemapala, Secretary to the Ministry of Energy, includes experts from various fields, such as power system planning, engineering, state-owned enterprise restructuring, law, and finance. Pubudu Niroshan Hedigallage, Director General of the Power Sector Reforms Secretariat, will serve as the General Secretary, while Chandana Wijayasinghe, Additional Secretary to the Ministry of Energy, will act as the Convener.
Members of the Committee
The appointed members bring a mix of academic, industry, and policy expertise, including:
Tilak Siyambalapitiya: Chairman of Ceylon Electricity Board
Janaka Aluthge: Representative from Lanka Electricity Company (LECO)
Athula Rajapakse: Professor, University of Manitoba, and contributor to the 2024 Energy Policy Framework
Lilantha Samaranayake: Dean, Faculty of Engineering, University of Peradeniya
Thushara Rathnayake and Indra Mahakalanda: Senior Lecturers, University of Moratuwa
Kosala Kamburadeniya: President-Elect 2024–25, Institution of Engineers Sri Lanka (IESL)
The committee is expected to deliver its recommendations within one month.
Government’s Commitment to Energy Reforms
The government, led by the ruling party, has reiterated its commitment to implementing comprehensive electricity sector reforms without privatizing existing assets. During its election campaign, it assured voters of lowering energy costs within a competitive, unbundled market.
The act, passed initially to fulfill conditions for an Asian Development Bank budget support loan, will now be reviewed to ensure it aligns with national objectives and stakeholder interests.
This review underscores the government’s focus on refining its policies to support a sustainable, affordable, and efficient electricity sector while addressing the concerns of various stakeholders.
