Mr. Deputy Speaker

¶ 01 In terms of Section 5(1) of the Act, the Public Utilities Commission of Sri Lanka shall be the Regulator for the Electricity Industry. Section 5(3)(1) provides that the Regulator shall have the power to ensure cost reduction in power purchase cost of the National System Operator and distribution licensees through adoption of open competitive procurement of new generation capacity in accordance with the Long-Term Power System Development Plan and least cost economic dispatch of available generation capacity by the National System Operator.

¶ 02 Clause 9 seeks to amend the above provision by deleting the words “least cost economic dispatch” and replacing them with “security constrained economic dispatch,” which Clause 19 defines as “the process that determines the most cost-effective optimal allocation of available generation units to meet the electricity demand while ensuring that all system operating limits in terms of network stability, reliability and security of the electrical power system such as generator capabilities, minimum and maximum output levels, ramp rates, reserve requirements, transmission line limits, voltage limits, and stability limits are respected.”

¶ 03 Counsel for the Petitioners submitted that the amendment would weaken price discipline, risk cost escalation and unfair prioritization, impede the Regulator’s ability to hold the National System Operator accountable for providing the lowest cost electricity to consumers, and remove safeguards against corruption, collusion and malpractice.

¶ 04 The learned Additional Solicitor General submitted that this arises from a misunderstanding. She stated that “economic dispatch” means operating generation facilities to produce electricity at the lowest cost to reliably serve consumers, recognizing operational limits of generation and transmission. Thus, the term “economic dispatch” itself encompasses “least cost” operation, and concerns about lack of price discipline or price escalation due to removal of the words “least cost” are unfounded.

¶ 05 While this Court is not equipped to decide which approach ensures least-cost supply, and this is a policy matter for the Executive, we observe that this amendment has been recommended by the Expert Committee appointed to review the Act and has been considered and approved by the Cabinet of Ministers.

¶ 06 Summary: [1] Clause 8(2) shall be amended suitably to provide that the members of the Committee referred to therein shall be liable under the Anti-Corruption Act, No. 9 of 2023.

¶ 07 [2] Clause 13(1)(c) is violative of Article 3 of the Constitution, and requires passage by a special majority and approval by the People at a Referendum. The violation shall cease if: (a) the proviso to be included after Section 17(2)(b) by Clause 13(1)(c) is deleted; and (b) Clause 13(1)(d) is amended to read: “The Secretary to the Treasury shall be initially allotted one hundred per centum of the shares in the successor companies incorporated under this section other than the companies referred to in items (a), (e), (f), (g) and (h) (ii) of Schedule I and the company referred to in item (i) (i) of Schedule I relating to hydropower generation in which the Secretary to the Treasury shall be permanently allotted one hundred per centum of the shares.”

¶ 08 [3] Clause 13(1)(b) is vague and arbitrary as it does not contain provisions relating to transfer of employees and their rights during the second stage of unbundling. This violates Article 12(1) read with Article 14(1)(g) of the Constitution; Clause 13(1)(b) shall only be passed by the special majority required under Article 84(2). The violation shall cease if Clause 14 is amended by inserting a new Clause 14(3) containing Sections 18(3)(h) and 18(3)(i) as follows:

¶ 09 Proposed Section 18(3)(h): “ensure that all officers and servants of the Generation Company referred to in item (a) of Schedule I (in this paragraph referred to as ‘Generation Company’) holding office in the Generation Company on the day preceding one year from the date of publishing the final transfer plan in the Gazette shall be— (i) duly identified by the Generation Company; (ii) notified by the Generation Company of their proposed assignation to the respective successor companies referred to in item (i)(i) of Schedule I within four months from the date of publishing the final transfer plan in the Gazette; (iii) required to notify the Generation Company within two months of the receipt of the notice referred to in subparagraph (ii), whether they opt to be assigned to such respective successor companies referred to in item (i)(i) of Schedule I or not; and shall with effect from the date succeeding one year from the date of publishing the final transfer plan in the Gazette be assigned to such successor companies referred to in item (i)(i) of Schedule I under the final transfer plan on terms and conditions not less favourable than those enjoyed by them on the day preceding the appointed date under the contract of employment with the Ceylon Electricity Board. Where an employee does not opt to be assigned to a successor company referred to in item (i)(i) of Schedule I under the final transfer plan, such employee shall be entitled to a voluntary retirement scheme and the terms and conditions of such scheme shall be prescribed within four months from the date of publishing the final transfer plan in the Gazette; and”

¶ 10 Proposed Section 18(3)(i): “ensure that all officers and servants of the Distribution Company referred to in item (g) of Schedule I (in this paragraph referred to as ‘Distribution Company’) holding office in the Distribution Company on the day preceding one year from the date of publishing the final transfer plan in the Gazette shall be— (i) duly identified by the Distribution Company; (ii) notified by the Distribution Company of their proposed assignation to the respective successor companies referred to in item (i)(ii) of Schedule I within four months from the date of publishing the final transfer plan in the Gazette; and (iii) required to notify the Distribution Company within two months of the receipt of the notice referred to in subparagraph (ii), whether they opt to be assigned to such respective successor companies referred to in item (i)(ii) of Schedule I or not; and shall with effect from the date succeeding one year from the date of publishing the final transfer plan in the Gazette be assigned to such successor companies referred to in item (i)(ii) of Schedule I under the final transfer plan on terms and conditions not less favourable than those enjoyed by them on the day preceding the appointed date under the contract of employment with the Ceylon Electricity Board. Where an employee does not opt to be assigned to a successor company referred to in item (i)(ii) of Schedule I under the final transfer plan, such employee shall be entitled to a voluntary retirement scheme and the terms and conditions of such scheme shall be prescribed within four months from the date of publishing the final transfer plan in the Gazette.”

¶ 11 [4] Clause 13(2) violates Articles 12(1) and 14(1)(g) of the Constitution. The violation shall cease if proposed Section 17(7) (inserted by Clause 13(2)) is amended by increasing the number of members of the Board of Directors from five to nine and by inserting a new paragraph as Section 17(7)(a) to read as “four persons from employees serving in the Ceylon Electricity Board on the day preceding the appointed date and former employees of the Ceylon Electricity Board.”

¶ 12 We record our appreciation of the assistance given by the learned Additional Solicitor General representing the Hon. Attorney General, the learned President’s Counsel and other learned Counsel who appeared for the Petitioners.

¶ 13 M.D. Nawaz, J — Judge of the Supreme Court Arjuna Obeysekere, J — Judge of the Supreme Court K. Priyantha Fernando, J — Judge of the Supreme Court

¶ 14 RESIGNATION OF HON. (DR.) HARSHANA SURIYAPPERUMA, MEMBER OF PARLIAMENT

¶ 15 I wish to inform Parliament that the Hon. (Dr.) Harshana Suriyapperuma, Member of Parliament, has tendered his letter of resignation from Membership of Parliament to the Secretary-General of Parliament and as a result, a vacancy has occurred in the Membership of the Tenth Parliament. That letter will now be read out by the Secretary-General of Parliament.

¶ 16 Whereupon the Secretary-General of Parliament read the following letter:

¶ 17 PARLIAMENT 20.06.2025 The Parliament of Sri Lanka, Sri Jayewardenepura Kotte.

¶ 18 LETTER OF RESIGNATION.

¶ 19 As I am expected to take over another official engagement, I tender herewith my resignation with effect from the end of the day of 20th June, 2025.

¶ 20 Kindly facilitate the acceptance of this Letter of Resignation and make arrangements necessary to process the same at your earliest convenience.

¶ 21 I sincerely appreciate the facilitation extended by H.E. the President, Hon. Prime Minister, Hon. Speaker, Hon. Members of the Parliament and particularly by staff members of the Parliament during my tenure as a Member of Parliament and as the Deputy Minister of Finance and Planning.

¶ 22 Thank you. Yours Sincerely, Dr. Harshana Suriyapperuma Member of Parliament Deputy Minister of Finance and Planning

¶ 23 ELECTION OF A NEW CHAIRMAN FOR COMMITTEE ON WAYS AND MEANS

¶ 24 Since the Chair of the Committee on Ways and Means, the Hon. (Dr.) Harshana Suriyapperuma, Member of Parliament, resigned from his Membership of Parliament with effect from 20.06.2025, I wish to inform that in terms of Standing Order No. 132(1)(b), a Meeting of the Committee on Ways and Means will be held on 05th August, 2025 to elect a Member for the vacant Chairmanship of that Committee.

¶ 25 RESIGNATION OF CHAIRMAN OF SECTORAL OVERSIGHT COMMITTEE ON INFRASTRUCTURE AND STRATEGIC DEVELOPMENT

¶ 26 I wish to inform Parliament that the Chair of the Sectoral Oversight Committee on Infrastructure and Strategic Development, the Hon. Ajith P. Perera, Member of Parliament, has given written notice to the Hon. Speaker of his resignation from the Chairmanship of the said Committee.

¶ 27 Accordingly, as per Standing Order No. 111(12), action will be taken by the relevant Committee to appoint a Member to fill the said vacancy in the future.

¶ 28 AUDITOR-GENERAL’S REPORT

¶ 29 On behalf of the Hon. Speaker, I present the: - Fourth Instalment – Parts XXII and XXIII of the Report of the Auditor-General for the Financial Year 2023; and - First Instalment – Parts I, II and III of the Report of the Auditor-General for the Financial Year 2024 in terms of Article 154(6) of the Constitution.