The Hon. Kumara Jayakody - Minister of Energy

¶ 01 Hon. Speaker, the answer to the question raised by Hon. Ravi Karunanayake under Standing Order 27(2) on 2026.02.05 is as follows.

¶ 02 1. Parliament, in 2024, passed the Sri Lanka Electricity Act, No. 36 of 2024. In line with the new Government policy, it has been amended by the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025. Under the provisions of this Act, the activities of the Ceylon Electricity Board (CEB) are to be reorganized. For electricity generation, transmission, distribution and supply, as well as for the assignment of all assets and liabilities of the CEB, six subsidiary companies have been incorporated under the Companies Act, No. 7 of 2007, as follows: 1) Electricity Generation Company – to undertake electricity generation. 2) Electricity Distribution Company – to undertake electricity distribution. 3) National Transmission System Provider Company – to undertake electricity transmission. 4) National System Operator Company – to undertake planning, dispatch, system operation and other non‑wire transmission functions. 5) Energy Ventures Company – to undertake the remaining functions of the CEB other than those assigned to the above companies. 6) CEB Employees’ Funds Company – to carry out and manage functions of the CEB Employees’ Provident Fund and Pension Fund.

¶ 03 All six companies will operate with managerial and technological autonomy to introduce new technologies and management concepts to enhance efficiency and quality of service, while remaining 100% state‑owned by the General Treasury.

¶ 04 2. A policy decision to implement time‑of‑use tariffs has not been taken.

¶ 05 3. Not raised. No.

¶ 06 4. The Sri Lanka Electricity Act was amended by Act No. 14 of 2025, passed on 18 August 2025, introducing a two‑stage restructuring programme.

¶ 07 5. Government activities are being conducted based on the people‑centred policy “Prosperous Country – Beautiful Life.”

¶ 08 6. Yes.

¶ 09 7. No.

¶ 10 8. Rs. 20 billion is a temporary estimate. Not applicable.

¶ 11 9. Measures are being taken by the CEB to restore the power supply system that was disrupted. Some remedial measures have been carried out on a temporary basis. To stabilize the power system, rehabilitation/repair and maintenance will be implemented progressively through planned operations, spreading costs over several years, with minimal impact on electricity consumers.

¶ 12 10. No.

¶ 13 11. Cabinet approval has been granted to include the cost of the Voluntary Retirement Scheme (VRS) within the tariff methodology. However, the Public Utilities Commission of Sri Lanka (PUCSL) has not granted approval. Therefore, those costs will not be loaded onto consumers. The Treasury is expected to provide these funds.

¶ 14 12. Cabinet approval has been obtained to include VRS costs in the first tariff revision of 2026; regulatory approval has not been received.

¶ 15 13. Cross‑subsidy mechanisms will not be removed.

¶ 16 14. No such situation has arisen.

¶ 17 15. Funding for transmission development is being arranged through multilateral financial institutions: the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB) and the World Bank. In addition, participation of private investors for transmission infrastructure on a public‑private partnership basis is being pursued. The Act also provides for privately owned transmission lines under regulatory oversight.

¶ 18 16. For transmission development, ADB has provided a USD 200 million loan, the World Bank USD 30 million, and AIIB USD 52 million. These institutions have also expressed willingness to further support transmission infrastructure going forward.

¶ 19 Further, the Cabinet has decided to expedite calling for investment proposals from interested investors for transmission infrastructure, in accordance with due process. The Ministry of Energy is working, including with the World Bank, to design a suitable model for private sector participation.

¶ 20 17. No.

¶ 21 Regarding firming variable renewable energy, no such policy decision to curtail has been taken. The Government is proceeding to install Battery Energy Storage Systems (BESS) as follows: - Under ADB funding, a 100 MW BESS at the Kolonnawa Grid Substation is being procured; the tender process is underway. - BESS totalling 160 MW will be installed across 16 grid substations nationwide; contract awards commenced yesterday. We have secured very favourable prices, with discharge tariffs from around Rs. 17 per kWh, an unprecedented outcome for the energy sector, which we plan to scale up further. - PUCSL has approved installing 300 MW of additional BESS nationwide; preparatory work for tendering is in progress. We expect to finalize within two months and complete installations within six months thereafter.

¶ 22 18. No such situation has arisen.

¶ 23 19. Competitive international bidding for power procurement is mandatory under the Electricity Act and will be followed. Ongoing procurements initiated prior to this Government will continue uninterrupted.

¶ 24 20. We are taking steps to achieve the 70% renewable energy generation target for 2030. The Long‑Term Generation Expansion Plan is being revised to allocate more space to renewable energy resources.