CEB no more: Major power sector restructuring begins

9 March 2026 07:02 am Views - {{hitsCtrl.values.hits}} 15 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

A A A

Colombo, March 9 (Daily Mirror) - In a historic shake-up of Sri Lanka’s power sector, the Ceylon Electricity Board (CEB) has been officially dissolved and replaced with six separate state-owned companies from midnight yesterday, marking the beginning of a major restructuring of the country’s electricity industry.

CEB Media Spokesman Engineer Dhammika Wimalaratne told the Daily Mirror that an Extraordinary Gazette Notification had been issued to establish six successor companies by transferring the functions and responsibilities previously handled by the CEB.

The Gazette, which came into effect today (March 9, 2026), ends the 56-year-old institution that was originally established under the Ceylon Electricity Board Act No. 17 of 1969.

Under the new structure, the electricity utility will be divided into six separate entities responsible for electricity generation, transmission, distribution and system operations.

The move also brings into force the remaining provisions of the Sri Lanka Electricity Act No. 36 of 2024, with the exception of several specified sections.

According to Wimalaratne, the restructuring officially ends the operational structure of the CEB, with all responsibilities now transferred to the six newly created companies.

“All employees of the CEB, except those who applied for the Voluntary Retirement Scheme (VRS), have been assigned to the six successor companies. Their appointment letters will be issued from tomorrow (March 10),” he said.

Employees who applied for VRS are considered to have resigned from their positions with effect from last night. However, the VRS benefits will be provided to them at a later stage, and their resignation letters are expected to be issued today.

The spokesman also noted that the existing media spokesman post attached to the CEB will cease to exist, with each of the six new companies expected to appoint its own spokesperson.

He assured the public that the restructuring would not affect electricity generation or supply in the country.

Meanwhile, Lanka Electricity Company (Pvt) Ltd (LECO) will fall under the newly established distribution company as part of the restructuring process.

The Spokesman said the division of the CEB into multiple state-owned companies is intended to improve transparency, accountability and efficiency in the management of Sri Lanka’s electricity sector, marking one of the most significant reforms in the industry’s history.

Comments - 15

Indrajith Monday, 09 March 2026 07:16 AM

Excellent, long outstanding !!!!

2 20

Rasi Monday, 09 March 2026 07:57 AM

Time will tell how these decisions will impact the power generation and distribution in the country. However, it is a good step forward, and the government needs to take action to restructure many government institutions, such as the railway department, SriLankan Airlines, and others. These government organisations have not seen major changes for more than 40-50 years, which has led to severe administrative issues affecting the whole country and the Sri Lankan people. There is no perfect way in this world to do these things, and we need only bold decisions and courage to initiate progressive changes.

2 27

Mohamed Yoosuff Monday, 09 March 2026 08:32 AM

Great move, we will need some efficiencies in the pwoer sector. Congratulations to the current government for doing the hard work.

4 20

joshua Monday, 09 March 2026 08:44 AM

despite the protests, the Govt went ahead. Great. Good time to right size the employee requirements and do away with all political appointees who are just warming the seat.

2 23

No to splitting the CEB Monday, 09 March 2026 09:08 AM

Not a good move. Duplication of some functions, while endemic corruption will now multiply 6 fold. Any change should be for the benefit of customers. They pay the substance and profitability of organizations. It's not the "investors".those are there to squeeze profits. Time will tell when the disaster unfolds. Examples - UK privatization of the Railways, Ports etc. There is a place for private capital and efficiency, but not in SL for power gen.

16 9

L de Silva Monday, 09 March 2026 10:10 AM

Agree with you completely. UK went ahead and privatised the railways. It was a disaster. Delayed trains, breakdowns, technical issues, many many problems, so much so that they had to reverse this decision. Public Utilities should never be privatised. LECO is a disaster with constant breakdown and malfunctions, which affect the end consumers. It's the consumer who has to pay the price, with electronic equipment being damaged numerous times due to power breakdowns, shortages and surges! This is going to be a disaster. The Govt will wash it's hands off after their 4 years! IMF / WB throttling the govt to change policies, with the consumers/ ordinary citizens being at the receiving end of such manipulation.

16 6

Realistica Adams Monday, 09 March 2026 10:44 AM

This is not railways hello, do you know the electricity model in UK? It’s all private. In SL CEB the huge monopoly has been broken up under a different model, but is state owned.

3 11

Sumedha Monday, 09 March 2026 03:39 PM

All the jobless idiots come across as technical experts!

0 2

James Monday, 09 March 2026 10:17 AM

People feels it as a great move at the first instance but it will not be as good as we think. Upto now the CEB operated as a service provider but soon it will operate for profit. Just check what happen when UK privatised the railways. Now the UK rail fares became among the highest in Europe

13 5

Realistica Adams Monday, 09 March 2026 10:35 AM

Don’t ever use that term CEB again, it’s a hated name in SL, a hotbed of corruption, mismanagement and engineering mafias.

2 10

Duplicate Functions must centralised to keep the cost lower Monday, 09 March 2026 03:29 PM

Government must consider to eliminate duplicate functions of these six entities keep the cost lower and not increasing the cost. Ex: HR department must be centralised and must be one, not required Six HR departments; Marketing Department, must be one; Operations Department must be one; IT Department must be one centralised etc.... Government must identify the duplicate functions of all these Six units and bring it to one centralised place, thereby reduce the cost and pass the cost benefits to the consumers

0 0

velu rasiah Monday, 09 March 2026 05:17 PM

Six entities imply six CEO's six Chief accountants, six board of directors, an d six so many other things. The end result is all these will add up the consumers have to cough it up. Just have one entity (with different name not CEB) put all these under one umbrella with an honest and uncorrupte d CEO with an veto power board of directors from consumers as majority.

0 0

velu rasiah Monday, 09 March 2026 05:17 PM

Six entities imply six CEO's six Chief accountants, six board of directors, an d six so many other things. The end result is all these will add up the consumers have to cough it up. Just have one entity (with different name not CEB) put all these under one umbrella with an honest and uncorrupte d CEO with an veto power board of directors from consumers as majority.

0 2

Realistica Adams Tuesday, 10 March 2026 12:33 PM

People who don’t understand about corporate restructures, just putting their two cents worth? So why do it then, if it is simple as you say? Go and do your own research. Developed countries did these things 30 years ago. Hunduwa? Exactly.

0 0

CitizenX Monday, 09 March 2026 08:48 PM

Some fools who are talking about UK's privatisation of railways don't know nothing. These are STATE owned private limited companies.

0 2

222

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.