The World Bank, Asian Development Bank, and JICA have expressed serious concerns regarding the process of reversing reforms related to the Ceylon Electricity Board (CEB), warning that there is a risk of losing their support for future projects.
This was reported on the Advocata Facebook page, which also noted that the government has yet to provide an appropriate response. However, the Minister of Power has commented during a program that the actions of these institutions reflect a non-partisan and depoliticized approach. If this is an official government stance, it could be a serious matter, the report emphasized.
According to the Advocata Facebook post, the full note is as follows:
🔴 The World Bank, Asian Development Bank, and JICA have all expressed strong concerns about the CEB’s unilateral process of reversing reforms. They have warned that their support for future projects could be jeopardized.
👉 These three institutions have sent a joint letter to the Minister of Power, raising questions about amendments introduced to the new electricity bill. These institutions have historically been major contributors to Sri Lanka’s energy sector investments. Therefore, maintaining good relations with them is extremely important for future energy and development projects.
🔴 According to their statement:
- Concerns about permanent government ownership:
Amendments to Article 17, sub-section 2 of the basic Act stipulate that certain institutions listed under sections (a), (e), (f), (g), and (h)(ii) will be permanently owned by the government through the Secretary to the Treasury.
As 100% government ownership is maintained for the NSO (National System Operator), NTNSP (National Transmission and National System Planning), and the Pensions Liabilities Company,
The financial burden on the state will increase
Opportunities for private investment in the power generation and distribution companies will be limited
Alternatives for developing a sector that has significant investment needs will be blocked
- Issues with the National Transmission Network Service Provider (NTNSP):
Under Article 20, it is planned to bring LTL Holdings and Sri Lanka Energies under the NTNSP.
This creates problems because:
LTL Holdings has more than 1GW of power generation capacity (in Sri Lanka and abroad)
Sri Lanka Energies has about 15MW of hydropower generation
Both companies also operate other businesses such as transmission, distribution, and transformer manufacturing
As a result:
Nearly 20% of Sri Lanka’s electricity generation would be controlled under a single entity, NTNSP
The NTNSP’s core focus on improving transmission network infrastructure would be diluted
It could undermine the primary mission of the CEB (transmission vs. generation separation)
Transparency and accountability concerns could arise, opening doors to corruption and fraud
- Issues regarding the Distribution Company:
Under Article 20, the distribution company would take over all assets, liabilities, and functions of LECO (Lanka Electricity Company).
About LECO:
It operates independently from the CEB’s distribution segments
Uses efficient systems and modern technologies for customers and employees
Problems with the new proposal:
Complete absorption of one distribution company by another
Commercial, operational, and legal impacts are ignored
Emerging concerns:
Creation of extremely powerful NTNSP and distribution companies could damage system efficiency, transparency, and accountability
Could cause conflicts among stakeholders
May enable fraud, corruption, and irregularities
Ultimately, financial losses and irregularities would fall on consumers
👉 With such detailed clarifications and questions, this statement has been released. The government has still not provided an appropriate response.
👉 Only the Minister of Power has given personal views during a program, criticizing this statement, saying it reflects a non-partisan and depoliticized approach.
👉 Is that an official government statement? If so, that would be a serious matter. This is a grave issue that must be taken seriously. We have seen such situations repeatedly in our history. As a result, we have suffered from the consequences of ill-considered decisions by leaders, including a bankrupt state and queues at stores. We, as a nation, are still paying for those mistakes. Therefore, we must not go down that path again. Mistakes must be acknowledged and corrected.
We must put aside attacking the messenger, and instead truly understand reality. Otherwise, not even the son of Sakra (the king of gods in Buddhist mythology) could stop us from falling into another crisis.
