Final Countdown: Sri Lanka to Formally Liquidate Ceylon Electricity Board by End of February
By Diyatha News New Zealand International Desk
COLOMBO, SRI LANKA (Tuesday, February 3, 2026) — The long-awaited restructuring of the Ceylon Electricity Board (CEB) has entered its final stages, with the Sri Lankan government poised to officially announce the liquidation of the state-owned utility giant by the end of this month.
The sweeping reforms, aimed at modernizing the island nation’s energy sector and reducing the massive financial burden on the state, are being executed in five strategic phases. According to the Power Board Transformation Task Force, the process is now on the brink of completion.
✅ Four Out of Five Phases Complete
Pubudu Niroshan, Head of the Electricity Board Transformation Task Force, confirmed that four critical stages of the restructuring have already been successfully concluded:
- Primary Assignment Plan: Establishing the new framework for energy management.
- Annual Power Procurement Plan: Streamlining how electricity is purchased.
- Long-term Generation Plan: Mapping out Sri Lanka’s energy production for the coming decades.
- Long-term Transmission Development Plan: Upgrading the national grid infrastructure.
The remaining final step involves finalizing the National Electricity Policy and the National Tariff Policy. These are expected to be completed by the third week of February, clearing the way for the official liquidation date to be declared.
👋 Voluntary Retirement & Payouts
A key component of the transition is the reduction of the CEB’s massive workforce. The government has approved a Voluntary Retirement Scheme (VRS) for employees choosing to leave the organization before the new entities take over.
- Applicant Stats: Originally, 2,173 employees applied for voluntary retirement.
- Final Count: Following 20 withdrawals, a total of 2,153 employees have been approved for the scheme.
- Compensation: Payouts for these workers are scheduled to begin immediately following the formal liquidation announcement later this month.
⚡ What Happens Next?
Once the CEB is liquidated, its functions will be unbundled into separate independent entities responsible for generation, transmission, and distribution. This move is expected to introduce more transparency, competitive pricing, and a greater focus on renewable energy integration in Sri Lanka.
