By: Staff Writer
May 28, Colombo (LNW): Sri Lanka’s ambitious electricity sector reform programme has entered a decisive phase, with finance professionals and policymakers acknowledging that restructuring the state-run power sector will require more than legislation alone. The debate intensified during a high-level seminar organised by the Association of Public Finance Accountants of Sri Lanka, where experts examined the controversial restructuring of the Ceylon Electricity Board under the new Electricity Act No. 36 of 2024 and its 2025 amendment.
The seminar, attended by more than 250 participants including chartered accountants and senior public finance officials, highlighted growing concern over the operational and financial realities of reforming one of Sri Lanka’s most critical state institutions. While officials described the legal framework as a major step toward modernising the country’s energy sector, experts also warned that the transition would be complicated, politically sensitive, and institutionally demanding.
Opening the discussion, President of the Association Tishan Subasinghe stressed that accounting and finance professionals cannot remain passive observers while sweeping economic reforms reshape the country’s public sector. He argued that professionals in governance and financial management must actively contribute to national restructuring efforts, particularly when state institutions are under pressure to improve efficiency and transparency.
The keynote address by Prof. M. Thilakasiri provided a detailed explanation of the rationale behind the reforms. According to him, the 2024 Electricity Act was designed as a broad reform blueprint intended to reshape the country’s energy sector into a financially sustainable and operationally efficient system. However, as authorities moved from policy design to implementation, several weaknesses in the framework became increasingly visible.
Prof. Thilakasiri explained that the subsequent 2025 amendment was introduced to correct structural and institutional flaws discovered during the practical planning stages. Among the key concerns were uncertainties surrounding governance structures, ownership arrangements, staff transfers, and operational responsibilities within the proposed restructuring framework.
A central feature of the reforms is the proposed “unbundling” of the CEB a process intended to separate key functions such as generation, transmission, and distribution into distinct operational units. Supporters argue that this would improve accountability, financial visibility, and managerial efficiency. Critics, however, fear that fragmentation could create new administrative challenges and expose the sector to political and commercial risks.
The discussion became particularly animated during the seminar’s interactive question-and-answer session, where participants raised concerns about implementation costs, institutional resistance, workforce implications, and long-term governance safeguards. Many attendees questioned whether legislative reform alone could resolve decades of inefficiencies and financial instability within the energy sector.
Responding to these concerns, Prof. Thilakasiri admitted that the restructuring exercise should not be viewed as a “magic solution” to every longstanding issue facing Sri Lanka’s electricity industry. Instead, he described the reforms as a strategic starting point requiring continuous adjustments, gradual improvements, and a long-term commitment to institutional change.
He further noted that the success of the reforms would ultimately depend on disciplined execution, regulatory consistency, and the government’s ability to navigate resistance from multiple stakeholders while maintaining public confidence in the country’s energy future.
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