Reforming the Ceylon Electricity Board (CEB)

Sri Lanka’s electricity sector reforms need consultation from within to ensure the state enterprises receive the right breakthrough in becoming more efficient institutions.

At a discussion held recently at the Chartered Accountants of Lanka auditorium a number of professionals from the Ceylon Electricity Board (CEB) were brought on stage by the ‘Thought Leadership Forum’ moderated by Ranel Wijesinha, a founder of the forum, highlighting the facts and figures in running the institution and laying out the claims against it.

It was highlighted that the perceptions of most people that the institution is over staffed and inefficient were clearly “unfair and untrue”, according to Eng. Buddhika Wijayawardana.

He explained that the increase in the employees by 60 per cent was in line with the increase in the number of consumers that increased by 117 per cent. The installed capacity was increased in line with the growth of the country particularly between the years 2004-2022.

During the discussion it was noted that while the government has the right to issue policy guidelines to state institutions; however, some were brought into force without any rationale. The meetings held with the authorities did not involve any consultation on the reforms to be carried out, it was pointed out.

In fact, once the bill on the new Act was called for comments they had made two submissions after it was gazetted.

Eng. Wijayawardana also explained that the Lanka Electricity Company (LECO) is a profitable venture since their account is separate and is not connected to other costs as the CEB. Moreover, displaying numbers he noted that when compared with LECO, the CEB is not overstaffed.

Eng. Dr. Tilak Siyambalapitiya pointed out that most of the problems arise due to inaction and policy which makes electricity more expensive than it should be. The CEB is said to have an accumulated debt mainly working capital related debt.

This is clearly evident in that during the years 2014 – 2022 the Public Utilities Commission of Sri Lanka (PUCSL) did not allow an increase in the tariff, it was noted. In 2014 the Presidential election promises to reduce electricity prices by 25 per cent led to the PUCSL to be restrained due to political interference.

He noted that if reforms at the CEB is due to inefficiency at the institution then there is a need to call for independence of these institutions in the new Act.

Moderator Mr. Wijesinha explained that with the opening up of the economy there was the listing of state owned institutions and privatisation of a number of state entities including SriLankan Airlines.

But noted that when reforms are carried out consultations should also be called for prior to implementing them.