The Hon. Eranga Weeraratne - Deputy Minister of Digital Economy

¶ 01 Hon. Presiding Member, the new Sri Lanka Electricity (Amendment) Act of 2024, being a bold move to restructure the CEB, does not go far enough in creating a transparent, competitive and future-proof organizational and institutional structure. Therefore, the Amendments proposed by this Government have been introduced to bring in critical structural changes and digital innovations needed to ensure that the electricity sector could serve our citizens efficiently, attract investments, reduce tariffs and pave the way for a future of sustainable energy.

¶ 02 The people of this country gave this Government a clear mandate to reform the broken systems, dismantle inefficiencies, end corruption and to deliver affordable and reliable services to all. As articulated in the NPP Energy Policy, our energy transition by restructuring one monolithic organization such as the CEB would increase efficiency and transparency, inviting innovation and putting the people at the centre of the energy system.

¶ 03 Sir, I will briefly explain a few main structural changes proposed by these Amendments. Planning and procurement, dispatching of electricity and its system operation will be done by the National System Operator — NSO — which will be 100 per cent owned by the Government. The National Transmission Network Service Provider will handle the power flow from generating companies to distribution companies, again 100 per cent owned by the Government. However, there could be additional players providing transmission services based on national requirement. Multiple generation companies including those generating renewable energy and Independent Power Producers — IPPs — will compete to provide electricity at a lower price. Then multiple distribution companies will serve consumers. The existing distribution arm of the CEB will be restructured into a separate organization 100 per cent owned by the Government and new distribution companies may come up in the future.

¶ 04 Introduction of competitive bidding to build power plants and bulk purchase of electricity by NSO is essential in driving down costs and improving service quality. Many countries that started with monolithic government organizations have successfully restructured: Australia’s NEM with real-time bidding and day-ahead procurement reduced prices and improved reliability; Malaysia unbundled TNB while retaining state control in transmission, with IPPs generating significant shares; India separated generation, transmission and distribution; Singapore’s EMA allows consumers to choose among multiple retailers with real-time wholesale trading and smart grid integration; South Africa is unbundling Eskom.

¶ 05 Digitalization is foundational. Smart grids enable real-time monitoring, reduce technical losses and serve flexible demand. Smart meters empower consumers to manage usage, support pre-paid options and eliminate billing errors. AI and analytics will optimize operations and maintenance. Digital tendering ensures transparent, auditable procurement. Land management portals will fast-track approvals and provide real-time land availability to investors. Digitalization will empower citizens, build investor confidence and reduce costs through operational excellence.

¶ 06 Will tariffs reduce? Yes — with a realistic, phased approach: competition in procurement, phasing out costly emergency power, reducing technical and commercial losses, and leveraging digital efficiencies. As to the workforce: this is institutional transformation, not dismantling. Provisions include a 100 per cent government-owned employees’ fund for pensions and welfare, employment guarantees through transition to new institutions or voluntary retirement (VRS), and training/upskilling for future-ready roles, with transparent HR communications.

¶ 07 These Amendments are a critical step to unlock Sri Lanka’s electricity potential, honour the people’s mandate, trust in technology, and act responsibly for future generations. Let us act in the long-term national interest and make electricity efficient, affordable, transparent and digital. I urge the House to pass these Amendments for the people we serve. Thank you.