Category: Daily Financial Times

The Government of Sri Lanka, working with the Asian Development Bank (ADB), has introduced a special program for Micro, Small, and Medium Enterprises (MSMEs). This initiative allows MSMEs lacking adequate collateral to obtain loans through 13 selected banks and financial institutions, including Seylan Bank. Through the collaborative launch of the National Credit Guarantee Institution Ltd. (NCGIL), the Bank with a Heart’s support reaffirms its continued commitment to inclusive financial empowerment and holistic simplified solutions aimed at strengthening national economic development.

Through the NCGIL’s enabling of uncollateralised lending through partial credit guarantees, banks will be able to assess entrepreneurs based on cash flow and business viability other than asset security, marking the first national-scale, risk-sharing credit guarantee model introduced in Sri Lanka, with Seylan Bank playing a critical role in its implementation. Backed by the Government, the Ministry of Finance, and Economic Stabilisation and National Policies, and ADB, NCGIL aims to resolve the limited access to capital due to insufficient collateral that functions as a persistent barrier to success for MSMEs.

The initiative will allow MSMEs to fund capital expenditure and permanent working capital needs with eligible loans ranging from Rs. 500,000 to Rs. 25 million. The NCGIL will secure up to 67% of qualifying loans, in case of eventuality under the guarantee scheme. Additionally, a guarantee fee of 1% to 2% per annum, based on the business’s risk profile, will be applicable and recovered annually on the outstanding guaranteed amount. Special consideration is afforded to priority sectors including women-owned or managed businesses, manufacturing enterprises, tourism, agriculture and information technology, and export-oriented industries

As part of this initiative, the LIYA SHAKTHI Guarantee Scheme has been introduced to strengthen access to finance for women-owned and women-led MSMEs. This program provides enhanced guarantee coverage of up to 80% of the loan amount or capital outstanding, compared to the 67% coverage available under the standard guarantee scheme currently operated by the NCGIL. By supporting women entrepreneurs with greater financial security, LIYA SHAKTHI aims to empower female-led enterprises and encourage their active contribution to Sri Lanka’s economic growth.

Working to accommodate applications for MSME loans under the NCGIL scheme, Seylan Bank’s goals of enabling transformation and empowering power with solutions aligns with the initiative’s purpose to encourage aspiring entrepreneurs and underserved business owners. Through the NCGIL, Seylan Bank aims to expand access to sustainable credit, helping unlock the untapped potential of Sri Lanka’s MSME sector while contributing to national economic resilience and inclusive growth.

Discussing their collaboration with the NCGIL, Seylan Bank Chief Operating Officer Ranil Dissanayake said, ‘As the Bank with a Heart, we have a vested interest in helping emerging businesses find their feet and excel. As a flexible financing option, we’re excited to support the National Credit Guarantee Institution as it moves to back the aspirations of businesses that will potentiate an economic boom by driving innovation, job creation, and community upliftment.’

The Colombo Stock Exchange (CSE) is to conduct a planned full day of trading from the Disaster Recovery site using the Automated Trading System Disaster Recovery Solution tomorrow (10).

The UN Committee on Enforced Disappearances (CED) on Tuesday issued its findings on Sri Lanka during the ongoing session of the United Nations Human Rights Council (UNHRC).

In its report, the Committee said it was concerned about the lack of a comprehensive register of disappeared persons and the limited progress in clarifying their fate and whereabouts, noting that the Office on Missing Persons (OMP) had only traced 23 disappeared persons out of the 16,966 received cases.

It also stated its concern about the high level of impunity, reflected in the lack of progress in the investigation and prosecution of alleged enforced disappearances, including those that occurred during the armed conflict.

The Committee also said it was concerned about the accidental discovery of at least 17 mass graves which underscored the limited forensic capacity among competent authorities and the absence of centralised ante-mortem and post-mortem databases as well as a national genetic database.

It urged Sri Lanka to strengthen the capacity of competent national institutions to locate and identify mass graves, seek and conduct exhumations, and develop a comprehensive strategy for the search for, identification, excavation, and investigation of identified burial sites.

This comes days after the UNHRC adopted a new resolution on Sri Lanka without a vote to extend for two more years the mandate of the Office of the UN High Commissioner for Human Rights (OHCHR). This means the Government will have two years before a comprehensive review of how it addresses human rights issues in the country.

The reality for any party that takes power in the country is that it has to address human rights issues that remain unaddressed for decades. It is not the doing of one government or of a few individuals, this is an issue that the citizens of the country need to collectively come to understand as one that cannot be sidestepped forever, if there is to be genuine interest in reconciliation in the country.

The NPP Government which won overwhelmingly at the Parliamentary election from the North and East of the country promised to address human rights violations/disappearances, etc. but so far not much has changed.

There were promises to replace the Prevention of Terrorism Act (PTA) but other than appointing an expert committee to review the law, it remains very much in place and people continue to be detained under the PTA.

There was also the pledge to set up an independent prosecutor office which too has made little headway.

The Government, during its submission to the UNHRC was firm that it will only be through the domestic process that human rights violations will be investigated, and those found guilty punished. Foreign Minister Vijitha Herath who addressed the meeting said State institutions have already been de-politicised and strengthened and there is more scope for independent and fair investigation in the country than ever before.

The problem with this position is that neither the UN nor the countries that have been calling for international investigations into Sri Lanka are willing to take it seriously. They see a lack of credibility in the domestic process as well a lack of faith in the system by families of victims of alleged war crimes/disappearances.

Hence for the Government both convincing international partners as well as the family members of victims to keep faith in the local system is a challenging task.

Successive Governments have used the UNHRC sessions to buy time, but justice has not been delivered. The NPP, unless it acts with sincerity and firmly, will tell the UNHRC the same story two years down the line with little to show for progress.

Matheesha Perera and Lidiya Fonseka were crowned champions at the Sri Lanka Badminton Novices Championship 2025 which concluded on Thursday 2 October at the Deshabandhu Lt. Col. W. Wimaladasa Indoor Stadium in Kuruwita, Ratnapura. While Matheesha pocketed the Men’s Open Singles title, Lidiya was crowned the Women’s Open Singles Champion, as she claimed a double after winning the Girl’s Under-17 Singles title.

Unseeded Matheesha easily overcame third seed Suresh in the Men’s Open Singles final, following a clean run up to the final. He was initially troubled by Suresh in the first set, but Matheesha remained composed to claim the first set 21/14, and continued his form to record a 21/7 win in the second set to seal the Men’s Open Singles title.

Lidiya easily overcame Shehani Wijenayake in straight sets with scores of 21/8 and 21/10 to claim her double title at the SLB Novices Championship 2025, emerging as one of the top performers of the five-day event. Subair Aathil teamed up with S.M. Imzan to beat Ashen Imalka and Adihtya Kalhara in straight sets to emerge Men’s Open Doubles champion, while Devindra Fernando paired up with Sandali Geekiyanage to overcome Omindu Bimsara and Sandumi Amaya in straight sets, in an otherwise exciting final to claim the Mixed Open Doubles title.

Nishadi Thenushika accounted for a double crown in the Under-19 category, winning the Girl’s Singles as well as the Girls’ Doubles titles, while Lafeer Ansaf recorded a straight win to overpower Yagama Gimhana in straight sets to win the Boy’s Singles title. Despite losing the Singles final, Gimhana teamed up with Irun Shakya to record a straight win against Omira Dinsara and Tharuka Rajin, and claim the Boys’ U-19 Doubles title. Nishadi beat Thashara Jayaratne in the Girl’s U-19 Singles in straight sets, and later teamed up with her opponent to record a comfortable straight win on their way to earn the Girls’ U-19 Doubles title.

While Women’s Open Singles winner Lidiya Fonseka earned her first title, beating Thesandi Dinuwari in the Girl’s Under-17 Singles final, Pubudu Melon claimed a double crown, winning the Boy’s Singles as well as the Doubles titles. Pubudu beat Mohamed Basim in straight sets to claim the Boy’s U-17 Singles title, and teamed up with Duvindu Edirisinghe to outsmart Basim and Munas Asmal to claim the Boy’s U-17 Doubles title.

Udan Peiris overcame Binupa Ratnayake in straight sets to claim the Boy’s Under-15 Singles title while Sesadi Anujana bounced back from an early setback to thump Vinuthi Mendis 2-1 and claim the Girl’s U-15 Singles title. Akram Ahamed and Lithum Fernando made a strong resistance before overcoming Sanira Mendis and Udan Peiris in straight sets to emerge Boys’ U-15 Doubles winners, while Isuli Rajapaksha and Siyansa Wickramasinghe thwarted the challenge possessed by Raini Gamage and Crystal Weerakkody on their way to become Girls’ U-15 Doubles champions.

Sashmitha Damsara beat Manul Fernando in straight sets to become the Boy’s Under-13 Singles Champion, while Sanuthi Mahinsha enjoyed a similar outcome against Sithuli Samarasinghe to emerge the Girl’s Under-13 Singles Champion. In a close contest where the final went down to the wire, Sanithu Mahinsha and Siheli Siriwardhana prevailed over Manudi Rehansa and Benadi Weerakoon by 2-1 to emerge the Girls’ U-13 Doubles Champions. Ruwan Basitha and Denuka Karunaratne recorded a comfortable straight win against the Jayawickrama brothers, Senon and Thinon, to claim the Boys’ U-13 Doubles title.

The Sri Lanka Badminton Novices Championship 2025 was held simultaneously at three prominent indoor facilities in the Sabaragamuwa region – the Deshabandhu Lt. Col. W. Wimaladasa Indoor Stadium in Kuruwita, the Sabaragamuwa Province Indoor Sports Complex and the Seevali College Indoor Stadium, both situated in Ratnapura. The organisers, SLB, received the full support of by the Regional Development Committee and Sabaragamuwa Province Badminton to conduct the five-day event.

The competition, which began at all three venues with the preliminary round matches on 28 September, concluded with the finals of all age categories on 2 October, followed by the awards ceremony. The tournament was sponsored by Mobil, Sunquick and LiNing.

Results of all finals

Men’s Open Singles: Matheesha Perera beat Suresh Jayasooriya 2-0 (21/14, 21/7)

Women’s Open Singles: Lidiya Fonseka beat Shehani Wijenayake 2-0 (21/8, 21/10)

Men’s Open Doubles: Subair Aathil/S.M. Imzan beat Ashen Imalka/Adithya Kalhara 2-0 (21/14, 21/15)

Mixed Open Doubles: Devindra Fernando/Sandali Geekiyanage beat Omindu Bimsara/Sandumi Amaya 2-0 (21/18, 21/18)

Boy’s U-19 Singles: Lafeer Ansaf beat Yagama Gumhana 2-0 (21/12, 21/18)

Girl’s U-19 Singles: Nishadi Thenushika beat Thashara Jayaratne 2-0 (21/10, 21/9)

Boys’ U-19 Doubles: Yagama Gimhana/Irun Shakya beat Omira Dinsara/Tharuka Rajin 2-0 (21/11, 21/15)

Girls’ U-19 Doubles: Nishadi Thenushika/Thashara Jayaratne beat Dinugi de Silva/Sethumdi Wijegunawardena 2-0 (21/9, 21/9)

Boy’s U-17 Singles: Pubudu Melon beat Mohamed Basim 2-0 (21/17, 21/14)

Girl’s U-17 Singles: Lidiya Fonseka beat Thesandi Dinuwari 2-0 (21/16, 21/9)

Boys’ U-17 Doubles: Duvindu Edirisinghe/Pubudu Melon beat Munas Asmal/Mohamed Basim 2-0 (21/16, 21/8)

Boy’s U-15 Singles: Udan Peiris beat Binupa Ratnayake 2-0 (21/14, 21/13)

Girl’s U-15 Singles: Sesadi Anujana beat Vinuthi Mendis 2-1 (13/21, 21/7, 21/8)

Boys’ U-15 Doubles: Akram Ahamed/Lithum Fernando beat Sanira Mendis/Udan Peiris 2-0 (21/15, 21/18)

Girls’ U-15 Doubles: Isuli Rajapaksha/Siyansa Wickramasinghe beat Raini Gamage/Crystal Weerakkody 2-0 (21/14, 21/20)

Boy’s U-13 Singles: Sashmitha Damsara beat Manul Fernando 2-0 (15/8, 15/13)

Girl’s U-13 Singles: Sanuthi Mahinsha beat Sithuli Samarasinghe 2-0 (15/9, 15/13)

Boys’ U-13 Doubles: Ruwan Basitha/Denuka Karunaratne beat Senon Jayawickrama/Thinon Jayawickrama 2-0 (15/6, 15/9)

Girls’ U-13 Doubles: Sanithu Mahinsha/Siheli Siriwardhana beat Manudi Rehansa/Benadi Weerakoon 2-1 (15/8, 12/15, 15/11)

Sri Lanka’s first-ever National AI Expo and Conference 2025 concluded on 30 September in Colombo, marking a transformative milestone in the nation’s journey toward becoming a regional artificial intelligence hub. Pioneered by Digital Economy Ministry and SLT-MOBITEL, the two-day event brought together local and global leaders, innovators, policymakers, to chart an ambitious roadmap for Sri Lanka’s AI-powered future.

Landmark conference addresses AI integration across all sectors

The conference explored AI’s role in digital economy, education, healthcare, agriculture, and national security. Experts stressed human capital development, innovation ecosystems, ethical deployment, and inclusivity, highlighting the need to democratise technology, reform education for a future-ready workforce, and strengthen cybersecurity.

Prime Minister Dr. Harini Amarasuriya graced the occasion as Chief Guest and emphasised AI’s growing influence on decision-making, envisioning Sri Lanka as a leader in using technology to solve problems, create opportunities, and build a fairer society. She stressed that critical thinking and scepticism are vital to keep innovation ethical and impactful and the importance of preparing a workforce capable of navigating modern technology, with a focus on integrating digital literacy and data education into the national curriculum.

Digital Economy Deputy Minister Eng. Eranga Weeraratne stressed AI’s importance and its overall contribution to the Digital Economy. Deputy Minister compared AI to electricity in its transformative power, calling on industry to invest in talent and ideas while ensuring equitable access that supports rural and urban communities, local languages, and Sri Lanka’s unique needs. He also announced plans for a dedicated start-up funding program beginning in January 2026 to support AI research and innovation.

SLT Group Chairman Dr. Mothilal De Silva, highlighted the pivotal role of telecommunications infrastructure in enabling AI, describing data networks as the ‘arteries carrying blood.’ He underscored SLT-MOBITEL’s commitment to advancing AI responsibly, ensuring data sovereignty, providing AI-as-a-service for all, and fostering broad stakeholder collaboration to build an inclusive, AI-enabled society. Dr. De Silva also emphasised the importance of partnerships between Government, industry, and academia to position Sri Lanka as a leader in the global AI landscape.

Exhibition showcase brings AI to life

Alongside the conference, a dynamic exhibition brought AI to life through demos, workshops, and hands-on experiences, drawing thousands of participants. Huawei, as technology partner, showcased AI-powered cloud, smart city, healthcare, and education solutions, linking global innovations to local needs. The event was further supported by Microsoft, AWS, EGUARDIAN, Tech One Global, WebAppClouds, Xencia, Aventude, Inflow Tech, Universal College Lanka, Clarity, NCINGA, Sri Lanka Insurance General, Connex IT, SLASSCOM, and FITIS.

A key highlight was the SLT-MOBITEL AI Campus, where students engaged in robotics, coding, and AI tools, receiving mentorship and guidance on courses and career paths while exploring real-world applications. The exhibition also featured hackathons and innovation challenges, concluding with an Awards and Recognition Ceremony that honoured winners across categories. The National AI Expo and Conference established a platform for collaboration among research institutions, enterprises, and students.

The Expo concluded with a renewed pledge to position Sri Lanka as a South Asian hub for digital services, fostering an ecosystem where tech entrepreneurs, SMEs, and multinational investors can thrive in a secure, innovation-driven economy.

WindForce PLC yesterday said that it has acquired a 51% equity stake in Safe Power International Ltd., to develop a Rs. 4.2 billion 10-megawatt wind power project in Alankuda, Puttalam.

The remaining 49% of Safe Power International will be held by Arinma Power Ltd., with a shareholder agreement between the two parties signed on 3 October.

The project, estimated to cost Rs. 4.2 billion, will be financed through a 75:25 debt-to-equity mix. WindForce said the investment is in line with its long-term strategy of expanding its renewable energy portfolio and will support the company’s earnings growth and sustainability targets.

WindForce, listed on the Colombo Stock Exchange, is an independent power producer with a diversified portfolio of wind, solar, and hydropower projects both locally and overseas.

Taj Samudra, Colombo was honoured to host the national women’s cricket teams of Australia, Bangladesh, and South Africa during their recent visit to Sri Lanka. In a heartfelt display of Sri Lankan hospitality, the teams were welcomed with traditional drummers and garlanding ceremonies, symbolising the warmth and cultural richness of the island nation. A warm welcome ceremony led by the Area Director – Taj Maldives and Sri Lanka, and General Manager Samrat Datta, alongside our team members at Taj Samudra, Colombo.

The National Enterprise Development Authority (NEDA), in collaboration with the Sri Lanka Institute of Marketing (SLIM), has officially launched the Certified Brand Analyst Program 2025.

The program, a joint effort with the Industry and Entrepreneurship Development Ministry, is designed to enhance the skills of Enterprise Development Officers (EDOs), enabling them to guide small and medium-sized enterprises (SMEs) in creating globally recognised brands. The initiative’s goal is to foster a new generation of brand creators within the Government.

Industry and Entrepreneurship Development Ministry Secretary Thilaka Jayasundara introduced the strategic concept of ‘branding the Industry Family.’ She emphasised that all key partners and entities under the ministry’s umbrella must work together, asserting that a unified vision and a collective effort are crucial for success, as no organisation can reach its full potential alone.

Using ‘Clean Sri Lanka’ as a national initiative, Jayasundara stated that its primary objective goes beyond merely cleaning streets; it’s about cleansing the mind-sets of the Sri Lankan people. She detailed the initiative’s three pillars as economic, social, and environmental. She emphasised that a clean environment is a direct result of building a strong economy and social structure.

She explained these pillars, support several key national targets set for 2030, all focused on building a manufacturing-led economy. Jayasundara said the first goal is to boost the manufacturing sector’s contribution to GDP from its current 16.2% to 20% by 2030. She said it is essential for reaching the broader national target of increasing the country’s overall GDP from 26.7% to 28% by 2030, which would pave the way for a ‘rich country and a beautiful life for all’ by 2028.

She shared the second goal as boosting entrepreneurship. Jayasundara noted that only 3.2% of the national labour force are entrepreneurs. To increase this contribution to at least 10% by 2030 is a challenging but necessary task. To ensure stability, she also outlined a series of ambitious financial targets. The ministry is aiming for a foreign income of $ 15 billion and a total import and export income of $ 28 billion by 2028, with a further national target of $ 36 billion by 2030. A failure to meet these goals, she warned could lead to economic instability due to the country’s debt obligations.

Jayasundara also highlighted the remarkable resilience of Sri Lanka’s apparel sector. She noted that despite global trade challenges, total exports for the first seven months of 2025 reached an impressive $ 9,992.53 million, marking a robust 7.79% growth over the previous year. To sustain this drive, she urged the industry to proactively identify and target new global markets, specifically pointing to South Africa and the Gulf countries as untapped and massive opportunities.

She outlined that a key objective of the ministry is to develop high-potential, export-led industries, diversifying the export basket, and increasing the number of export countries. Addressing the motivation behind the new specialised initiative, Jayasundara explained that the ultimate goal is to create a powerful export brand for Sri Lanka. She assured that the new program will enhance the quality of officers and that the ministry plans to introduce a KPI-based incentive system to drive results.

Jayasundara then outlined three crucial elements for this initiative: ‘Brand,’ ‘Certificate,’ and ‘Communication.’ She argued that both entrepreneurs and public officers must build their own personal brands to be effective; the certificate is designed to enhance the quality of participants and provide a formal qualification; and communication is vital for an initiative to succeed.

She also spoke of a long-term vision to unify the industry by merging NEDA, SED, and IDB, a plan first conceived in 2016. She expressed her belief that the SLIM institute would eventually join this collaborative framework, suggesting that these partnerships are essential for creating a national industrial brand.

SLIM President Prof. Dewasiri N. Jayantha then reflected on Sri Lanka’s economic history, noting that the country once had its own global brands, citing the Upali Group and its ventures as prime examples. He argued that a shift from an export-oriented model to import-driven consumption led to the significant depreciation of the Sri Lankan rupee and consistently negative balance of trade, which he identified as the beginning of the nation’s economic challenges.

He asserted that the 2022 national crisis finally ‘opened the eyes’ of the Government and private sector to the failure of this economic model. Despite being a 55-year-old institution, he acknowledge that SLIM couldn’t fully achieve its vision ‘to drive the nation towards economic prosperity.’ To rectify this, the organisation has identified entrepreneurship and the development of SMEs as its core pillars and has decided to invest heavily in a multi-tiered series of programs, with an initial estimate of 300 million Sri Lankan rupees to train 1,800 individuals. He clarified that this is not a profit-based venture for SLIM, but a fulfilment of its social and institutional responsibility.

He detailed the new training program, designed to create a ‘supportive arm’ of skilled professionals. The program starts with the Relationship Officers (RO) Program, training 700 individuals, 500 of whom will become Relationship Specialists. The Brand Analyst Program, a 10-week program, will train 100 individuals. From there, the top 50 will advance to become Certified Brand Strategists, and finally, a Business Consultant Program will train 350 individuals with the goal of creating 100 professional Business Consultants who could potentially earn in ‘millions.’ He also revealed that SLIM is in discussions to link this program to with the Chartered Management Institute located in UK with their Level 7 program, which would provide a globally recognised qualification.

He laid out the Brand Analyst Program curriculum in detail, first to third week: Introduction to branding, differentiating it from products, understanding its importance for SMEs, and focusing on brand elements, identity, and target audience. Fourth to seventh week: Strategic topics like brand positioning, developing a unique selling proposition (USP), and mastering brand storytelling and communication. Eighth to ninth week: Practical lessons on branding tools and techniques for local and export markets, including learning from mistakes and focusing on reputation management. Tenth week: The final ‘brand camp,’ which includes a practical simulation activity: the digital re-launch of a brand.

In addition to the educational content, the program offers a scholarship fund for the top ten performers, a Vietnam tour for the top student, and a compensation or bonus system for participants who achieve their KPIs.

He expressed gratitude for the Australian High Commission’s Sri Lanka Support Division, which will partially fund the program, noting that its outcome-based nature was highly compelling. He reaffirmed that SLIM’s motivation is not profit-driven but rooted in a sense of national responsibility.

He said the ultimate objective is to create 20 to 30 new global brands from Sri Lanka within the next two years, a significant increase from the current ‘less than a handful.’ He thanked all partners for enabling SLIM to be a key participant in this vital national journey.

The Ceylon Electricity Board Engineers’ Union (CEBEU) has called on Parliament’s Sectoral Oversight Committee on Infrastructure and Strategic Development to intervene in the ongoing electricity sector reforms, alleging that the process is being carried out in violation of the Sri Lanka Electricity Act No. 36 of 2024 and its 2025 amendment.

In a detailed submission to the Committee, the union warned that the reforms, including employee assignations, company restructuring, and asset transfers, are proceeding without a coherent strategic plan, statutory compliance, or adequate stakeholder consultation. The CEBEU said the process risks undermining institutional stability, employee trust, and national energy security unless corrective action and parliamentary oversight are urgently introduced.

The CEBEU letter in full is as follows:

Request for the intervention of the Sectoral Oversight Committee on Infrastructure and Strategic Development regarding the ongoing electricity sector reforms

The Ceylon Electricity Board Engineers’ Union (CEBEU), as the main representative body of engineering professionals within the Ceylon Electricity Board (CEB) and a key stakeholder in the electricity sector, wishes to bring to the attention of the Hon. Members of the Sectoral Oversight Committee on Infrastructure and Strategic Development a series of serious concerns regarding how the ongoing electricity sector reforms are currently being implemented in violation of the law, specifically the Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025.

While CEBEU has consistently extended its professional support toward a reform process that is transparent, technically sound, and beneficial to the public, we regret to note that the current process has deviated from the principles of good governance, institutional accountability, and statutory compliance envisioned under the Act.

We wish to highlight a few major concerns (but not limited to) as follows.

01. Absence of a coherent strategic plan

The reform program is proceeding in a fragmented and ad-hoc manner, without an approved and transparent strategic roadmap. Fundamental decisions affecting national energy security, public finance, and institutional restructuring are being taken without due technical consultation or feasibility validation.

02. Issuance of illegal Assignation Letters

It should be noted that the GM, CEB has been instructed to issue Assignation Letters to employees, even before the establishment and legal constitution of the successor companies, and to publish the terms and conditions of the VRS, under the provisions of the Act. Such actions have disregarded the due process outlined for employee assignation and consent. The premature issuance of these letters not only violates statutory procedure but also creates serious confusion and unrest among employees, undermining both the credibility of the reform process and the authority of the law itself.

03. Inadequacy of the Draft Preliminary Transfer Plan and HR Policy

The draft Preliminary Transfer Plan (PTP) and the accompanying draft Human Resource Policy documents circulated by the Power Sector Reform Secretariat are substantially inadequate and incomplete. These documents fail to meet the requirements prescribed under the Sri Lanka Electricity Act No. 36 of 2024, particularly those concerning the clarity of asset, liability, and human resource transfers, as well as the continuity of employee rights and institutional functions.

The absence of comprehensive, technically vetted, and legally compliant plans poses serious risks to the orderly implementation of the reforms. The preparation of these documents without adequate stakeholder consultation, supporting studies, or approval mechanisms undermines both the credibility and legality of the reform process.

04. Undermining the authority of the Board of Directors of the Successor Companies

The Minister has now appointed the Directors for the Successor Companies, and consistent with the primary objective of the Act, these companies should operate with independence and autonomy. However, all the reform committees have been appointed in an ad hoc manner, including members of PSRS in the committees, even for the responsibilities that are to be fulfilled by the Boards of Directors of the Successor Companies, in which PSRS also acts as the supervising entity. This dual role undermines independence and objectivity, conflicting with the principles of impartial oversight expected during this process.

05. Erosion of employee trust and institutional stability

The absence of clear communication, along with concerns about unequal treatment and the selective extension of retirement ages, in violation of Gazette No. 2309/04 of 5 December 2022, has generated uncertainty and unrest among employees. Such practices undermine public trust and risk destabilising a sector that is vital to the economy.

06. Non-Establishment of the Statutory Company for Pension and Provident Funds

Despite the clear requirement under the Act to establish a dedicated company for the management of the existing Pension and Provident Funds of the Ceylon Electricity Board, no such legal entity has yet been created. The absence of this institution leaves a critical vacuum in safeguarding the retirement benefits and financial security of over 25,000 employees and pensioners. This omission not only violates the legislative intent of the Act but also raises serious risks of mismanagement, legal disputes, and loss of employee confidence during the transition period. Immediate action is therefore essential to ensure that the statutory company is established, capitalised, and governed under proper legal and fiduciary frameworks before any employee transfers or assignations take place.

07. Unrealistic and frequently missed deadlines

The reform process has been marked by a series of unrealistic timelines and repeatedly missed deadlines set by the Ministry of Energy itself. Critical milestones-including the preparation of the Preliminary Transfer Plan (PTP), the establishment of successor companies, and the finalisation of employee assignation procedures-have been delayed far beyond the announced schedules. These recurring lapses have created serious doubts regarding the administrative capacity and sincerity of the process. Moreover, the tendency to hastily issue new deadlines without addressing the underlying institutional or technical bottlenecks has further eroded stakeholder confidence, giving the impression that the reforms are being driven by short-term political pressures rather than a structured, strategic roadmap envisioned under the Act.

08. Lack of transparency and public accountability

The reform process lacks an effective mechanism for stakeholder consultation and parliamentary scrutiny. Information on the progress of the reform, including methods and people involved, its financial implications, and institutional design, is not being disclosed adequately to either the public or the employees who will ultimately implement these reforms.

In view of the above, we respectfully request that the Sectoral Oversight Committee on Infrastructure and Strategic Development urgently review the ongoing electricity sector reform process, summon the relevant officials for clarification, and ensure that the reforms are implemented in strict accordance with the law, established procedures, and the principles of transparency, equity, and accountability.

We further request that the Committee provide an opportunity for the Ceylon Electricity Board Engineers’ Union (CEBEU) to present its professional observations and proposals before the Committee, so that Parliament is fully apprised of the practical and legal issues currently threatening the success of this nationally significant reform program.

Furthermore, we believe that only through proper dialogue and consultation can we effectively address the pending issues in PTP and the entire transition process, ensuring that there is no room for error, ambiguity, or future legal and operational challenges in its implementation, after the appointed date.

Please recognise that all these efforts are made by CEBEU in good faith and with genuine intent to guide the reform process in the right direction.

The Ceylon Electricity Board Engineers’ Union (CEBEU) has called on Parliament’s Sectoral Oversight Committee on Infrastructure and Strategic Development to intervene in the ongoing electricity sector reforms, alleging that the process is being carried out in violation of the Sri Lanka Electricity Act No. 36 of 2024 and its 2025 amendment.

In a detailed submission to the Committee, the union warned that the reforms, including employee assignations, company restructuring, and asset transfers, are proceeding without a coherent strategic plan, statutory compliance, or adequate stakeholder consultation. The CEBEU said the process risks undermining institutional stability, employee trust, and national energy security unless corrective action and parliamentary oversight are urgently introduced.

The CEBEU letter in full is as follows:

Request for the intervention of the Sectoral Oversight Committee on Infrastructure and Strategic Development regarding the ongoing electricity sector reforms

The Ceylon Electricity Board Engineers’ Union (CEBEU), as the main representative body of engineering professionals within the Ceylon Electricity Board (CEB) and a key stakeholder in the electricity sector, wishes to bring to the attention of the Hon. Members of the Sectoral Oversight Committee on Infrastructure and Strategic Development a series of serious concerns regarding how the ongoing electricity sector reforms are currently being implemented in violation of the law, specifically the Sri Lanka Electricity Act No. 36 of 2024 and the Electricity (Amendment) Act No. 14 of 2025.

While CEBEU has consistently extended its professional support toward a reform process that is transparent, technically sound, and beneficial to the public, we regret to note that the current process has deviated from the principles of good governance, institutional accountability, and statutory compliance envisioned under the Act.

We wish to highlight a few major concerns (but not limited to) as follows.

01. Absence of a coherent strategic plan

The reform program is proceeding in a fragmented and ad-hoc manner, without an approved and transparent strategic roadmap. Fundamental decisions affecting national energy security, public finance, and institutional restructuring are being taken without due technical consultation or feasibility validation.

02. Issuance of illegal Assignation Letters

It should be noted that the GM, CEB has been instructed to issue Assignation Letters to employees, even before the establishment and legal constitution of the successor companies, and to publish the terms and conditions of the VRS, under the provisions of the Act. Such actions have disregarded the due process outlined for employee assignation and consent. The premature issuance of these letters not only violates statutory procedure but also creates serious confusion and unrest among employees, undermining both the credibility of the reform process and the authority of the law itself.

03. Inadequacy of the Draft Preliminary Transfer Plan and HR Policy

The draft Preliminary Transfer Plan (PTP) and the accompanying draft Human Resource Policy documents circulated by the Power Sector Reform Secretariat are substantially inadequate and incomplete. These documents fail to meet the requirements prescribed under the Sri Lanka Electricity Act No. 36 of 2024, particularly those concerning the clarity of asset, liability, and human resource transfers, as well as the continuity of employee rights and institutional functions.

The absence of comprehensive, technically vetted, and legally compliant plans poses serious risks to the orderly implementation of the reforms. The preparation of these documents without adequate stakeholder consultation, supporting studies, or approval mechanisms undermines both the credibility and legality of the reform process.

04. Undermining the authority of the Board of Directors of the Successor Companies

The Minister has now appointed the Directors for the Successor Companies, and consistent with the primary objective of the Act, these companies should operate with independence and autonomy. However, all the reform committees have been appointed in an ad hoc manner, including members of PSRS in the committees, even for the responsibilities that are to be fulfilled by the Boards of Directors of the Successor Companies, in which PSRS also acts as the supervising entity. This dual role undermines independence and objectivity, conflicting with the principles of impartial oversight expected during this process.

05. Erosion of employee trust and institutional stability

The absence of clear communication, along with concerns about unequal treatment and the selective extension of retirement ages, in violation of Gazette No. 2309/04 of 5 December 2022, has generated uncertainty and unrest among employees. Such practices undermine public trust and risk destabilising a sector that is vital to the economy.

06. Non-Establishment of the Statutory Company for Pension and Provident Funds

Despite the clear requirement under the Act to establish a dedicated company for the management of the existing Pension and Provident Funds of the Ceylon Electricity Board, no such legal entity has yet been created. The absence of this institution leaves a critical vacuum in safeguarding the retirement benefits and financial security of over 25,000 employees and pensioners. This omission not only violates the legislative intent of the Act but also raises serious risks of mismanagement, legal disputes, and loss of employee confidence during the transition period. Immediate action is therefore essential to ensure that the statutory company is established, capitalised, and governed under proper legal and fiduciary frameworks before any employee transfers or assignations take place.

07. Unrealistic and frequently missed deadlines

The reform process has been marked by a series of unrealistic timelines and repeatedly missed deadlines set by the Ministry of Energy itself. Critical milestones-including the preparation of the Preliminary Transfer Plan (PTP), the establishment of successor companies, and the finalisation of employee assignation procedures-have been delayed far beyond the announced schedules. These recurring lapses have created serious doubts regarding the administrative capacity and sincerity of the process. Moreover, the tendency to hastily issue new deadlines without addressing the underlying institutional or technical bottlenecks has further eroded stakeholder confidence, giving the impression that the reforms are being driven by short-term political pressures rather than a structured, strategic roadmap envisioned under the Act.

08. Lack of transparency and public accountability

The reform process lacks an effective mechanism for stakeholder consultation and parliamentary scrutiny. Information on the progress of the reform, including methods and people involved, its financial implications, and institutional design, is not being disclosed adequately to either the public or the employees who will ultimately implement these reforms.

In view of the above, we respectfully request that the Sectoral Oversight Committee on Infrastructure and Strategic Development urgently review the ongoing electricity sector reform process, summon the relevant officials for clarification, and ensure that the reforms are implemented in strict accordance with the law, established procedures, and the principles of transparency, equity, and accountability.

We further request that the Committee provide an opportunity for the Ceylon Electricity Board Engineers’ Union (CEBEU) to present its professional observations and proposals before the Committee, so that Parliament is fully apprised of the practical and legal issues currently threatening the success of this nationally significant reform program.

Furthermore, we believe that only through proper dialogue and consultation can we effectively address the pending issues in PTP and the entire transition process, ensuring that there is no room for error, ambiguity, or future legal and operational challenges in its implementation, after the appointed date.

Please recognise that all these efforts are made by CEBEU in good faith and with genuine intent to guide the reform process in the right direction.