ECONOMYNEXT- Engineers of state-run energy monopoly has warned that un-bundled corporations might not be capable to function due lack data allocate belongings, liabilities, cashflows and operational plans in a Preliminary Switch Plan (PTP) that has been authorized by the Finance Ministry.
When the utility is separated in to era and transmission corporations, there was no data the PTP on allocate belongings and liabilities together with loans which will need to be break up between the 2 entities and individually serviced, the CEB Engineers Union mentioned in a letter to a parliamentary panel.
For era firm to repay loans, money has to stream from distribution firm by way of Energy Buy Agreements.
There have been no data on how the era, transmission and nationwide system operator was purported to run and work together with one another operationally, the letter mentioned.
Many clauses within the legislation, violate the legislation, CEBEU mentioned.
There was no data on a “monetary plan for the successor corporations, 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 small print in regards to the inventories and shares of entities.
“There aren’t any particulars concerning the allocation and preliminary valuation of belongings,together with land, buildings, vegetation, equipment, and different movable belongings, to the successor corporations, carried out by way of an asset valuation by the chief valuer of the belongings owned by CEB, in clear violation of Part 39.1(b).
“No operational agreements between corporations, 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 staff, the letter mentioned.
The total assertion is reproduced beneath:
Ms. Chula Herath, The Secretary,
Sectoral Oversight Committee on Infrastructure and Strategic Improvement, Parliament of the Democratic Socialist Republic of Sri Lanka.
Pricey Madam,
Request for the Intervention of the Sectoral Oversight Committee on Infrastructure and Strategic Improvement concerning the Ongoing Electrical energy Sector Reforms
That is additional to our letter addressed to you, CEBEU/25_26/Gen/28 dated October 07, 2025, concerning the identical topic.
As written within the aforementioned letter, the CEB Engineers’ Union (CEBEU) profoundly wished to convey to the eye of the Hon. Members of the Sectoral Oversight Committee on Infrastructure and Strategic Improvement a collection of great considerations concerning how the continuing electrical energy sector reforms are at present being carried out in violation of the legislation, 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 constantly offered skilled help for a reform means of the electrical energy sector that’s clear, technically sound, and useful to the general public, we remorse to notice that the present course of has strayed from the rules of fine governance, institutional accountability, and statutory compliance as outlined underneath the Act.
Along with the eight (08) bullet factors we referred to therein, CEBEU needs to urgently convey to your consideration a matter requiring quick mediation. This considerations the problems associated to the Preliminary Switch Plan (PTP), which is able to function the referral and roadmap for the successor corporations 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 embrace all particulars in regards to the vesting of actions of CEB associated to the restructuring of era, transmission, distribution, and provide of electrical energy, in addition to a monetary plan for the vesting of belongings and liabilities, which is able to initially be required for the successor corporations to start operations.
Exactly, this doc will decide the preliminary operations of the successor corporations, which is able to take over the CEB instantly after the appointed date, guaranteeing a dependable and steady energy provide throughout the nation, because the CEB will stop to exist after that date.
Nevertheless, we had been stunned to see a 10-page doc titled ‘Draft Preliminary Switch Plan’ (with 08 connected annexures) shared by the Secretary of the Ministry of Power in his letter MOE/SEC/COM/2025 dated September 25, 2025 (Attachment 01), requesting circulation among the many staff of CEB and welcoming observations by October 01, 2025 (inside 04 working days).
Nevertheless, this draft was circulated solely amongst chosen administration positions in CEB, not among the many staff or commerce unions, previous to October 01, 2025. This offered no alternative for the workers and commerce unions to remark on the inadequacy of this draft doc.
Nevertheless, we obtained additional surprising data 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 gentle 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 Power, and there aren’t 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, belongings, liabilities, and the duties and capabilities of CEB are to be transferred to the successor corporations (six in whole) throughout the first stage of unbundling, solely 4 corporations have been included to date.
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, belongings, liabilities, and the duties and capabilities of CEB to be transferred to these two corporations 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 corporations 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 obligatory 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 couple of detailed monetary plan for the successor corporations, 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 small print in regards to the inventories and shares of
entities.
f. There aren’t any particulars concerning the allocation and preliminary valuation of belongings,together with land, buildings, vegetation, equipment, and different movable belongings, to the successor corporations, carried out by way of an asset valuation by the chief valuer of the belongings owned by CEB, in clear violation of Part 39.1(b).
g. No operational agreements between corporations, 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 offered 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 corporations after the appointed date, and any problem-solving mechanism in violation of Part 18.1 of the Act.
2. Moreover, an inside switch mechanism for CEB staff was initiated inside the CEB underneath 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 staff (roughly 900) between the successor corporations on this PTP (Attachment 03).
3. The Secretary to the Ministry of Power 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 staff 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 Power, 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 Power 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 had been to be carried out, your complete electrical energy sector of the nation may collapse — not due to the workers of the CEB, however completely 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 Improvement urgently overview the continuing 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 legislation, established procedures, and the rules 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 vital reform program.
Moreover, we imagine that solely by way of correct dialogue and session can we successfully deal with the intense points within the PTP and your complete transition course of, guaranteeing that there isn’t any room for error, ambiguity, or future authorized and operational challenges in its implementation, after the appointed date.
Please acknowledge that every one these efforts are made by CEBEU in good religion and with real intent to information the reform course of in the proper d
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