ECONOMYNEXT- Engineers of state-run energy monopoly has warned that un-bundled companies might not have the ability to function due lack info allocate property, liabilities, cashflows and operational plans in a Preliminary Switch Plan (PTP) that has been authorised by the Finance Ministry.
When the utility is separated in to technology and transmission firms, there was no info the PTP on the best way to allocate property and liabilities together with loans that will must be break up between the 2 entities and individually serviced, the CEB Engineers Union stated in a letter to a parliamentary panel.
For technology firms to pay loans, money has to movement from distribution firms via Energy Buy Agreements.
There have been no info on how the technology, transmission and nationwide system operator was purported to run and work together with one another operationally, the letter stated.
Many clauses within the regulation, violate the regulation, CEBEU stated.
There was no info on a “monetary plan for the successor firms, together with the monetary liabilities and current debt allocation, inter-company account reconciliation (identification of receivables and payables), and identification of different monetary obligations(designated and customary), and the main points in regards to the inventories and shares of entities.
“There are not any particulars relating to the allocation and preliminary valuation of property,together with land, buildings, vegetation, equipment, and different movable property, to the successor firms, carried out via an asset valuation by the chief valuer of the property owned by CEB, in clear violation of Part 39.1(b).
“No operational agreements between firms, no particulars in regards to the energy buy agreements, transmission service settlement, energy provide agreements, draft licenses for NSO and NTNSP, and practical assurance for service continuation, in violation of Part 18.2, Part 10.14, Part 14.2, and Part 14.4 of the Act.”
The PTP was additionally silent on the provident fund of employees, the letter stated.
The total assertion is reproduced beneath:
Ms. Chula Herath, The Secretary,
Sectoral Oversight Committee on Infrastructure and Strategic Growth, Parliament of the Democratic Socialist Republic of Sri Lanka.
Pricey Madam,
Request for the Intervention of the Sectoral Oversight Committee on Infrastructure and Strategic Growth relating to the Ongoing Electrical energy Sector Reforms
That is additional to our letter addressed to you, CEBEU/25_26/Gen/28 dated October 07, 2025, relating to the identical topic.
As written within the aforementioned letter, the CEB Engineers’ Union (CEBEU) profoundly needed to carry to the eye of the Hon. Members of the Sectoral Oversight Committee on Infrastructure and Strategic Growth a collection of great issues relating to how the continued electrical energy sector reforms are at present being carried out in violation of the regulation, particularly the Sri Lanka Electrical energy Act No. 36 of 2024 and the Electrical energy (Modification) Act No. 14 of 2025 and one of the best worldwide practices.
Whereas CEBEU has persistently supplied skilled help for a reform means of the electrical energy sector that’s clear, technically sound, and helpful to the general public, we remorse to notice that the present course of has strayed from the ideas of fine governance, institutional accountability, and statutory compliance as outlined below the Act.
Along with the eight (08) bullet factors we referred to therein, CEBEU needs to urgently carry to your consideration a matter requiring rapid mediation. This issues the problems associated to the Preliminary Switch Plan (PTP), which is able to function the referral and roadmap for the successor firms to start operations on the day instantly after the appointed date associated to the Electrical energy Sector Reform course of.
As per the provisions of the Act, the PTP shall embody all particulars regarding the vesting of actions of CEB associated to the restructuring of technology, transmission, distribution, and provide of electrical energy, in addition to a monetary plan for the vesting of property and liabilities, which is able to initially be required for the successor firms to start operations.
Exactly, this doc will decide the preliminary operations of the successor firms, which is able to take over the CEB instantly after the appointed date, making certain a dependable and steady energy provide throughout the nation, because the CEB will stop to exist after that date.
Nonetheless, we have been shocked to see a 10-page doc titled ‘Draft Preliminary Switch Plan’ (with 08 hooked up annexures) shared by the Secretary of the Ministry of Vitality in his letter MOE/SEC/COM/2025 dated September 25, 2025 (Attachment 01), requesting circulation among the many workers of CEB and alluring observations by October 01, 2025 (inside 04 working days).
Nonetheless, this draft was circulated solely amongst chosen administration positions in CEB, not among the many workers or commerce unions, previous to October 01, 2025. This supplied no alternative for the staff and commerce unions to remark on the inadequacy of this draft doc.
Nonetheless, we acquired additional stunning info that the identical ‘Draft Preliminary Switch Plan’ had been forwarded to the Ministry of Finance for approval on the identical day it was despatched to CEB for feedback, and the approval of the Minister of Finance has been given to this similar draft by the letter PED/1/CEB/2/21(i) dated October 11, 2025(Attachment 02).
In mild of those developments, we want to point out the next,
1. In our opinion, the proposed draft PTP has been ready in a gross violation of the provisions of the Act, because it has did not adjust to (however not restricted to),
a. As per the provisions of Part 18.2 of the Act, the Switch Plan, together with the PTP, shall be ready in accordance with the coverage instructions of the Minister of Vitality, and there are not any such instructions talked about or referred to within the draft PTP.
b. In violation of the provisions of Part 17.2, Part 18.2, Part 18.3(d), and Part 18.3(e) of the Act, though all actions, property, liabilities, and the duties and capabilities of CEB are to be transferred to the successor firms (six in whole) throughout the first stage of unbundling, solely 4 firms have been included thus far.
The corporate, because the trustee and custodian of CEB’s pension fund and provident fund, together with the residual firm, are but to be included, and nothing has been talked about in regards to the actions, property, liabilities, and the duties and capabilities of CEB to be transferred to these two firms within the draft PTP.
c. Disregarding the provisions of Part 17.2, Part 18.3(d) and 18.3(e), no mechanism has been outlined for the pension fund and provident fund contributions from the opposite successor firms to the corporate of the trustee and the custodian of the pension fund and provident fund of CEB.
d. In violation of Part 18.3(d) and 18.3(e), no efforts are being made to securethe needed approvals for transferring the pension fund and provident fund of CEB, because it requires a collection of approvals.
e. In violation of Part 18.2(a) and Part 18.3(b), no particulars a few detailed monetary plan for the successor firms, together with the monetary liabilities and current debt allocation, inter-company account reconciliation (identification of receivables and payables), and identification of different monetary obligations(designated and customary), and the main points in regards to the inventories and shares of
entities.
f. There are not any particulars relating to the allocation and preliminary valuation of property,together with land, buildings, vegetation, equipment, and different movable property, to the successor firms, carried out via an asset valuation by the chief valuer of the property owned by CEB, in clear violation of Part 39.1(b).
g. No operational agreements between firms, no particulars in regards to the energy buy agreements, transmission service settlement, energy provide agreements, draft licenses for NSO and NTNSP, and practical assurance for service continuation, in violation of Part 18.2, Part 10.14, Part 14.2, and Part 14.4 of the Act.
h. No particulars are supplied for the contractual commitments, which CEB has entered into in violation of Part 18.2 and Part 39.1(f).
i. Nothing has been talked about in regards to the graduation of the operation of successor firms after the appointed date, and any problem-solving mechanism in violation of Part 18.1 of the Act.
2. Moreover, an inner switch mechanism for CEB workers was initiated inside the CEB below the management of PSRS a couple of weeks previous to the issuance of the discover of assignation, and nothing has been talked about in regards to the transfer-eligible workers (roughly 900) between the successor firms on this PTP (Attachment 03).
3. The Secretary to the Ministry of Vitality shared this PTP on twenty fifth September for feedback from CEB, however this draft was circulated solely amongst chosen administration positions inside CEB, offering no alternatives for CEB workers or commerce unions to remark.
4. The identical draft PTP was forwarded to the Ministry of Finance for approval on the identical day it was despatched to CEB for feedback by the Secretary to the Ministry of Vitality, and the approval of the Minister of Finance has been given to this similar draft, with out validating it for compliance with the provisions of the Act.
5. The approval letter from the Ministry of Finance has instructed the Secretary to the Ministry of Vitality to acquire the approval of the Ministers of the Cupboard for this doc.
6. There was no stakeholder session carried out with respect to this purported draft PTP, and we firmly imagine that, if this plan have been to be carried out, your entire electrical energy sector of the nation may collapse — not due to the staff of the CEB, however solely because of the Ministry’s reckless and irresponsible dealing with of the method.
In view of the above, we respectfully request that the Sectoral Oversight Committee on Infrastructure and Strategic Growth urgently evaluation the continued electrical energy sector reform course of, summon the related officers for clarification, and make sure that the reforms are carried out in strict accordance with the regulation, established procedures, and the ideas of
transparency, fairness, and accountability.
We additional request that the Committee present a chance for the Ceylon Electrical energy Board Engineers’ Union (CEBEU) to current its skilled observations and proposals earlier than the Committee, in order that Parliament is absolutely apprised of the sensible and authorized points at present threatening the success of this nationally important reform program.
Moreover, we imagine that solely via correct dialogue and session can we successfully tackle the intense points within the PTP and your entire transition course of, making certain that there isn’t a room for error, ambiguity, or future authorized and operational challenges in its implementation, after the appointed date.
Please acknowledge that each one these efforts are made by CEBEU in good religion and with real intent to information the reform course of in the precise d
