End of a 50-Year Era: CEB Dissolved, Power Sector Split Into Six Companies

COLOMBO (News 1st); Sri Lanka has officially brought six new state-owned companies into operation from today, following the abolition of the Ceylon Electricity Board (CEB), which had been responsible for electricity generation, transmission and distribution for more than 50 years.

The Ceylon Electricity Board Act No. 17 of 1969 became invalid at midnight yesterday, marking the end of the single institution that had overseen all major functions of the country’s power sector for decades. From today onward, those responsibilities move to six newly established companies.

For many years, the CEB carried a significant debt burden, and repeated issues emerged over its operations. Key concerns included emergency power purchases and a lack of transparency in procurement processes. During the 2022–23 economic crisis, the strain within the CEB also became a burden on the public. Although successive governments attempted to restructure the Board, none of those efforts were successful. 

With new legislation now in effect, the restructuring formally begins today.
Responsibility for power generation, transmission, distribution and system control is being divided among:

Electricity Generation Lanka (Pvt) Ltd
National Transmission Network Service Providers (Pvt) Ltd
National System Operator (Pvt) Ltd
Electricity Distribution Lanka (Pvt) Ltd
CEB Employees’ Fund (Pvt) Ltd
Energy Ventures Lanka (Pvt) Ltd

According to Pubudu Niroshan, Head of the CEB Restructuring Task Force, the new structure consists of four main companies and two subsidiary companies. All CEB-owned power plants will be transferred to EGL, while all distribution areas, except those under LECO, will fall under EDL.

He explained that the transmission system is divided into two parts: transmission lines and related infrastructure will be handled by NTNSP, while NSO, a fully state-owned company, will oversee system planning, procurement and future competitive generation, as well as the categorised supply of power to consumers.

All CEB employees will be allocated among the four main companies. The existing pension fund and provident fund will be transferred to CEB Employees’ Fund (Pvt) Ltd, ensuring that employee retirement funds remain “100% secure.” A sixth company has been created to handle minor functions that do not fall under the main entities. All six companies are fully owned by the government.

Niroshan added that from today, all electricity purchases will occur through competitive procurement, increasing transparency across the sector. He said various companies, including private firms, will enter into Power Purchase Agreements, Power Sales Agreements and Transmission Service Agreements, enhancing oversight and competition.

Addressing the public impact, Niroshan emphasised that electricity supply remained uninterrupted, despite the dissolution of the CEB. “From tomorrow, the name the public will encounter as electricity consumers is EDL. Instead of the CEB, EDL will be the company providing electricity. This also means greater transparency through competitive generation,” he said.