• Holding company to return; transmission, distribution to remain State-owned

The new Government is considering significant reforms to the Sri Lanka Electricity Act, with options ranging from amendments to a complete repeal and replacement following public consultation, according to Ceylon Electricity Board (CEB) Director Pubudu Niroshan Hedigallage.

Speaking to The Sunday Morning, Hedigallage, who is also a member of the NPP Energy Sector Policy Committee, stated that the Government was focused on introducing a more people-centric energy transition.

“The new administration is looking into whether the existing Electricity Act should be amended or replaced entirely. This decision will be made after gathering public input,” he said.

Hedigallage further revealed that the Government planned to reintroduce a holding company while maintaining 100% State ownership of transmission and distribution. 

He also noted that the concept of a National Systems Operator was part of the proposed reforms, although the establishment of an advisory council to oversee the implementation of the act may be reconsidered.

The Government will also seek the Attorney General’s opinion to ensure the proposed changes align with Sri Lanka’s legal framework. 

“It’s crucial that any changes to the Electricity Act match the country’s legal requirements and support the broader energy transition goals,” Hedigallage added.

The reforms come as part of the Government’s efforts to modernise the country’s energy sector, with a focus on improving efficiency and sustainability while ensuring public interest remains a priority, according to Hedigallage.