The Hon. Kumara Jayakody - Minister of Energy

¶ 01 The importance of this Amendment will become clear as I explain. In our childhood and for our children, we memorise lists of national heroes, yet sometimes a key name is forgotten. Over a century ago, D.J. Wimalasurendra dedicated his life to introducing the first electricity sector reforms through hydropower. We must not “miss the bus” again in this sector.

¶ 02 Reform discussions on moving the sector towards a market-based model began in the 1980s. Unfortunately, in past attempts, the hidden objective of some rulers was to sell public assets and allow their cronies to profit via tariffs squeezing the people. Crises were man-made—delayed decisions, then expensive emergency procurements. We must end this. While safeguarding the State’s strategic role for national security, we will ensure a transparent, competitive market for generation, transmission and distribution without selling people’s assets.

¶ 03 Past proposals aimed to break the CEB into 12 and privatise plants like Norochcholai and Mannar in the name of “attracting investment.” We have shown over the past ten months that investments can be brought without selling public assets. This Amendment ring-fences public assets from sale. We will not allow assets paid for by the people—often at sacrifice—to be sold under the guise of investment.

¶ 04 The 2024 Act proposed a National Electricity Advisory Council (NEAC) appointed by the Minister to advise only on electricity, duplicating existing CEB functions and creating unnecessary complexity. Our policy is to strengthen four core institutions in the sector and, in time, create a broader National Energy Planning entity covering the entire energy sector.

¶ 05 The 2024 Act mentioned establishing a wholesale market rather cursorily. We identify and structure the key market components, including ancillary services and a retail market. In the coming years, transparent prices for solar, battery storage, and even the value of demand response will emerge. With near-universal access now achieved, we must improve quality, 24/7 reliability, resilience to outages, and ensure the lowest possible prices for households and industry.

¶ 06 On implementation, the CEB’s approximately 23,000 employees—engineers and technical officers—are highly skilled. Many have left for better pay abroad. We need all current staff for the next chapter. Your rights and benefits will be protected and strengthened, including through collective agreements. We will build modern generation, transmission, and distribution institutions; this cannot be done with money alone—we need you. We studied these reforms for over a year and consulted thousands of CEB staff, development partners (World Bank, ADB, JICA), and experts for around eight months. We considered their input but remain bound to the mandate we received from the people: we will not sell public assets.

¶ 07 There was pressure even at the last moment to alter 100% Government ownership. There has been mudslinging at the Government, me personally, and at officials (many working voluntarily without pay or vehicles). Paid agitators, repetitive media shows, and even complaints to commissions have been used. This game will not continue much longer. I invite critics to stop the mud and join positively in building the next chapter of Sri Lanka’s electricity sector.

¶ 08 Thank you.