The Hon. Anura Karunathilaka - Minister of Urban Development, Construction and Housing

¶ 01 Hon. Presiding Member, the Department of Electricity became the CEB under the 1969 Act. Amendments followed in 1988, 2002, 2009, and 2024 due to evolving sectoral needs—efficiency, quality, and competitiveness.

¶ 02 In our NPP policy “A Prosperous Country, a Beautiful Life,” page 167, we stated that structural reforms in the electricity and energy sector are essential. Our policy is that while the State must maintain strong intervention in key public services like education, health, transport—and in strategic sectors like energy, finance, and ICT—this does not mean excluding the private sector. We strengthen state intervention and regulation while providing space for private sector participation.

¶ 03 Accordingly, the 2024 Act weakened state intervention. Through these Amendments we strengthen state intervention without hindering private participation. For example, in the 2024 Act, the transmission company had only about 50 percent state ownership. We now make it 100 percent state-owned, while allowing, where necessary, additional transmission by the private sector. Previously, the Secretary to the Treasury had powers to divest shares via tenders; we now seek to operate within a clear national energy policy framework, not ad hoc. Through this Amendment we create space to formulate an energy sector-wide national policy, and, instead of splitting the CEB into 12 ad hoc companies, we restructure it on a scientific, reasoned, and orderly basis into five principal state companies.