Description
The Ceylon Electricity Board (CEB) is Sri Lanka’s state-owned electricity utility responsible for the generation, transmission, and distribution of electricity across the country. In recent years, and especially in 2024, the CEB has come under public scrutiny over allegations of corruption, inefficiency, and mismanagement. These issues have contributed to high electricity costs, frequent losses, and delays in implementing much-needed reforms in the energy sector, including the transition to renewable energy.
Public criticism intensified due to revelations of questionable agreements with private power producers, lack of transparency in procurement processes, and political interference in board-level decisions. The alleged actions have raised concerns about vested interests controlling national energy policy for private gain at the expense of the public.
What is the corruption
- In 2024, CEB came under renewed scrutiny for deliberately delaying the approval of multiple renewable energy projects, including those already approved by the Sustainable Energy Authority and recommended by the Public Utilities Commission of Sri Lanka (PUCSL). This raised serious concerns about internal obstruction and sabotage.
- Leaked internal communications and testimonies suggested that senior CEB officials, including board members and engineers, were influencing decisions to block renewable energy to protect vested interests linked to fossil fuel imports and emergency power purchases.
- The CEB was accused of bypassing competitive bidding procedures for emergency power purchases once again in 2024, entering into high-cost agreements that lacked transparency and proper justification.
- Several solar and wind energy project developers publicly alleged that their proposals were either indefinitely stalled or subjected to arbitrary re-evaluations by CEB, despite meeting required standards. There were also claims that some were asked for informal payments or connections to “get things moving.”
- PUCSL, which previously had oversight authority over such approvals, was sidelined in key decisions, and its powers weakened, raising red flags about attempts to centralize unchecked decision-making within the CEB.
- Reports in 2024 pointed to political interference in appointments to the CEB board, with several politically affiliated individuals being appointed without adequate technical background or experience in the energy sector.
- Investigative reports published in 2024 highlighted cases where the same companies repeatedly won power purchase contracts under emergency terms, suggesting pre-arranged deals or collusion.
- Civil society, including TISL, raised concerns that delays in renewable energy development were not due to technical reasons but due to intentional obstruction by a group of actors within the CEB benefiting from maintaining the status quo.
- The lack of proactive publication of contracts, evaluation criteria, or procurement documentation in 2024 further reinforced concerns about secrecy and corruption.
Monetary value involved
While the exact monetary value of losses and irregular transactions has not been fully disclosed, according to News Articles, 2024, CEB’s corrupt practices, including delays in renewable energy approvals, bypassing competitive bidding for emergency power, and politically influenced contract awards, led to estimated financial losses of at least Rs 50–70 billion. These losses stem from overpriced emergency power deals, lost opportunities for cheaper renewables, and inefficient procurement.
What has been done
- TISL made public interventions through press statements, articles, and media appearances to expose and highlight ongoing corruption and governance failures within the CEB. These included pointing out delays in renewable energy approvals and the risks of continuing emergency power purchases without transparency.
- TISL supported the use of the Right to Information (RTI) to obtain documents related to power purchase agreements, correspondence regarding delayed renewable energy approvals, and board decisions. These RTI findings were used to inform the public and support media and advocacy efforts.
- TISL called for institutional reforms, including transparent procurement practices, independent oversight, and depoliticisation of board appointments at CEB. These recommendations were shared with relevant government institutions and stakeholders.
- Civil society groups and energy sector experts independently raised alarms in 2024 about the blocking of renewable energy projects and the manipulation of energy policy by vested interests. Some developers and industry stakeholders came forward with testimonies and documentation.
- Journalists and independent media outlets published a series of investigative reports in 2024 exposing how certain projects were intentionally delayed and how a small group within CEB was influencing key decisions for personal or political benefit.
- TISL and other accountability organisations used the CEB case to demonstrate the impact of state capture and corruption in public utilities, calling for broader structural reforms, especially in sectors handling public resources.
What can be done
- Mandate full transparency in all power procurement processes, including the publication of bidding documents, selection criteria, awarded contracts, and pricing details on a public online platform.
- Empower the Public Utilities Commission of Sri Lanka (PUCSL) with stronger legal authority and independence to regulate, approve, and oversee all major energy-related decisions, reversing attempts to weaken its role.
- Suspend or remove individuals involved in the obstruction of renewable energy projects or irregular procurement decisions, pending investigations. This includes board members, engineers, or senior management where credible evidence exists.
- Prosecute responsible officials under the Penal Code of the country if evidence reveals corrupt practices, abuse of power, or causing financial loss to the state through intentional decisions.
- Audit all power purchase agreements signed in 2023 and 2024 through the National Audit Office, focusing on those that bypassed competitive bidding, and refer problematic cases to law enforcement.
Links
CIABOC complaint lodged against former CEB Chair Dr Tilak Siyambalapitiya over conflict of interest in signing a 350 MW power purchase agreement:
https://ceylontoday.lk/2025/07/05/ciaboc-complaint-against-former-ceb‑chair/
Complaint by Electricity Consumers’ Association (ECA) alleging Dr Siyambalapitiya’s consultancy firm continued working with CEB and PUCSL post‑appointment: https://www.themorning.lk/articles/Tu2SgFoDmCv2Jd5DXbqR
Coverage by LankaSara: detailed report on conflict-of-interest case regarding the Sahasdhanavi project agreement with LTL Holdings: https://lankasara.com/news/former‑ceb‑chairman‑faces‑ciaboc‑complaint‑over‑conflict‑of‑interest/
