Energy Minister Kumara Jayakody has urged Ceylon Electricity Board employees to back the CEB reform, saying staff should engage with the process and avoid disruption as the state-owned utility is reorganised.
CEB reform to split the utility into four entities as government seeks financing and efficiency
Energy Minister Kumara Jayakody appealed directly to employees of the Ceylon Electricity Board to place their trust in the CEB reform and to allow the process to proceed without obstruction, amid trade-union threats of protest. The minister told reporters the reform package does not include the earlier cabinet decision to remove 12,000 positions from the CEB, and he said staff would have two months to register views and concerns. Jayakody urged workers not to be swayed by misinformation and framed the changes as necessary to safeguard the utility’s future.
Under the proposed law, the CEB would be reorganised into four state-owned entities: a single transmission company, a distribution company, a system operator and an enabling or support unit. Officials say the objective of the CEB reform is to make the power sector more bankable, attract international financing and improve operational efficiency while keeping core transmission and distribution infrastructure under government ownership. Multilateral lenders such as the Asian Development Bank have been cited as key drivers behind the restructuring, as Sri Lanka seeks financing to stabilise a sector affected by inefficiencies, high costs and dependence on expensive liquid-fuel generation.
Supporters argue that separating transmission, distribution and system operations will allow specialised management, clearer accountability and better financial transparency—features that could reduce losses and make future investment easier to secure. However, critics have voiced strong reservations. Trade unions, the Public Utilities Commission (PUCSL) and many energy experts warn the bill could weaken regulatory independence, increase the risk of politicised tariff decisions, and dilute protections for both consumers and employees under the banner of reform. Concerns also include the adequacy of worker transition plans, the timeline for implementation and whether projected efficiency gains will materialise.
Stakeholders say the success of the CEB reform will depend on implementation detail. Safeguards to protect regulatory autonomy, clear and transparent tariff-setting mechanisms, robust labour-transition frameworks and firm commitments from lenders will be essential to preserve public trust. For employees, assurances on rights and fair compensation during any organisational change are critical. For consumers and investors, predictable regulation and transparent governance will determine whether the restructuring delivers lower costs and improved service. As the two-month consultation window begins, all parties—government, unions, regulators and lenders—face a test in balancing investor confidence and operational reform with social protections and regulatory integrity.