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Power sector reforms on track; CEB break-up plan ready for Cabinet

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Sri Lanka’s power sector reform programme has reached a critical milestone, with the Initial Vesting Plan to restructure the Ceylon Electricity Board (CEB) and establish successor companies now completed and ready for Cabinet approval.

Speaking to The Island, Director General of the Power Sector Reforms Secretariat, Eng. Pubudu Niroshan Hedigallage, said the programme, launched under the Sri Lanka Electricity (Amendment) Act No. 36 of 2024, is being implemented in two phases — the Initial Vesting Plan and the Final Vesting Plan — within the Secretariat’s two-year mandate, ending on June 26, 2026.

“The Initial Vesting Plan, which details the creation of successor companies and the transfer of CEB assets, liabilities, duties and operations, has now been finalised in line with the policy directions of the Minister of Power and Energy,” he said.

Eng. Hedigallage added that the plan incorporates observations from the Attorney General and guidance from the Minister of Finance and the Secretary to the Treasury, ensuring alignment with wider fiscal consolidation and structural reform objectives.

Once Cabinet approval is obtained, the Minister in charge will gazette the appointed date on which the CEB will be legally dissolved. Prior to that, the CEB Board must complete the transfer of assets and liabilities to the new companies, which will take over electricity services and commercial operations from that date.

He said the preparatory work was completed over 15 months with voluntary contributions from Secretariat members, including himself, Institution of Engineers Sri Lanka President Eng. Kosala Kamburadeniya and Dr. Indra Mahakalanda.

Clarifying media reports on his resignation, Eng. Hedigallage said the move was a formal administrative step to ensure a smooth and speedy transfer, and did not indicate any disruption to the reform agenda.

“The reforms will advance for the benefit of employees opting for voluntary retirement, those joining the successor companies, electricity consumers, and the national economy,” he said, adding that the move also supports Sri Lanka’s ongoing IMF-backed structural adjustment programme.

By Ifham Nizam



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Commander of the Navy pays courtesy call on Speaker of the Parliament

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The Commander of the Navy, Vice Admiral Damian Fernando paid a courtesy call on the Speaker of the Parliament, Dr Jagath Wickramaratne at the Office of the  Speaker, today (7 July
2026).

The meeting marked the Commander of the Navy’s first official interaction with the Speaker following his assumption of command of the Sri Lanka Navy. During the cordial discussion, they exchanged views on the Navy’s role in matters of national importance.

The formal meeting drew to a close with an exchange of mementoes, signifying the importance of the occasion.

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Prison mayhem leaves at least 26 dead; five officers killed in revenge violence

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Police and STF personnel rushing an injured prison officer to an ambulance after yesterday’s clash at the Negombo Prison.

At least 26 people, including five prison officers and 20 inmates, have been confirmed dead following violent unrest at Negombo Prison, hospital sources said yesterday, as authorities struggled to restore full control over the facility.

According to unconfirmed reports the prison officers were killed by rioters yesterday morning,  in retaliation, and weapons carried by those officers were grabbed by them.

Negombo General Hospital Director Consultant Dr. Pushpa Gamlath said nearly 100 injured persons had been admitted, following the clashes, and eight of the critically wounded had been transferred to the National Hospital, in Colombo, for further treatment.

The violence, which initially broke out on Sunday (5) between remand prisoners and convicted inmates, left two inmates dead and 38 others injured before being temporarily brought under control.

However, tensions flared again on Monday (6), with prison officials reporting renewed unrest inside the facility despite earlier assurances that the situation had stabilised.

Police said the initial confrontation was triggered by a dispute linked to the exposure of an alleged drug trafficking network, operating within the prison, and was reportedly orchestrated by a drug trafficker, identified as Suresh, who is said to have links to an underworld figure known as ‘Booru Moona’.

The violence rapidly escalated, with female inmates staging a protest on the Prison roof in support of those involved in the clashes, while relatives gathered outside demanding information on detainees. Police later facilitated visits for selected family members to hospitalised inmates.

The Negombo Prison, which houses around 1,800 remand and convicted inmates, descended into widespread disorder as rival groups clashed, with reports indicating that the violence later spread beyond the initial confrontation.

Authorities said rioting inmates had allegedly seized firearms during the renewed unrest on Monday, prompting heightened security measures.

The Sri Lanka Air Force deployed drones for aerial surveillance and a Bell 412 helicopter to monitor the situation, while additional military personnel were sent to reinforce security around the prison.

Prisons Department spokesperson A.C. Gajanayake said a special investigation team had been appointed, under the direction of the Commissioner General of Prisons, to probe the incident, while a separate police investigation is also underway.

Justice Minister Harshana Nanayakkara told The Island that he had called for a detailed report on the disturbances.

By Norman Palihawadane

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Cleaner, cheaper electricity gathers momentum with rapid progress in 50 MW Mannar wind power project

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Sri Lanka’s drive towards cleaner and cheaper electricity gathered fresh momentum with the reported rapid progress in the 50 MW Mannar Wind Power Project, which is expected to produce the lowest-cost wind-generated electricity in the country’s history while saving billions of rupees in annual fuel imports.

The Ministry of Energy announced that the first wind turbine for the project had already arrived in the country, while the remaining turbine components have reached the Port of Trincomalee and are currently being unloaded, signalling a major milestone in the construction of one of the country’s key renewable energy ventures.

The project, inaugurated by President Anura Kumara Dissanayake, in January this year, is expected to become a cornerstone of the government’s strategy to transform Sri Lanka’s electricity sector by expanding renewable energy generation and reducing dependence on imported fossil fuels.

According to the Ministry, electricity generated by the Mannar wind farm will be purchased at USD 0.0465 (approximately Rs. 14.37) per unit, making it the lowest tariff ever secured for wind-generated electricity in Sri Lanka.

Energy experts say the competitive tariff demonstrates the growing economic viability of renewable energy and could help stabilise future electricity prices.

The Ministry also estimates that once the wind farm is connected to the national grid, Sri Lanka will save approximately Rs. 4.7 billion annually by reducing the import of fossil fuels required for thermal power generation, easing pressure on the country’s foreign exchange reserves.

The Mannar project is expected to support the government’s ambition of substantially increasing the contribution of renewable energy to the national electricity mix, by 2030, while helping Sri Lanka move towards its long-term goal of achieving net-zero carbon emissions by 2050.

Hayleys Fentons PLC, selected through an international competitive bidding process, is responsible for the installation and maintenance of the wind turbines.

The National System Operator (NSO), operating under the Ministry of Energy, will oversee the integration and management of electricity generated by the project within the national grid.

By Ifham Nizam

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