News
Illegal payments to staff amounted to Rs 3,679 mn
CEB law unto itself, violates Cabinet decision, FM circular
Rs 48 bn workers’ taxes paid; 25% salary increase
by Shamindra Ferdinando
The Board of Directors of the Ceylong Electricity Board (CEB) has continuously made quite significant payments to its workers in violation of a decision taken by the Cabinet-of-Ministers on 14 Nov. 2008 and Management Services Circular of No 39 of May 26, 2009.
This was revealed during the proceedings of the Committee on Public Enterprises (COPE) on 10 June, when the Ceylon Electricity Board top management appeared before the parliamentary watchdog.
The COPE convened with its Chairman Prof. Charitha Herath presiding.
It was revealed that the violation of the Cabinet decision as well as the Management Services Circular issued by the Finance Ministry had taken place even during the incumbent government.
The COPE took up with the CEB officials the issue of illegal payments made to the tune of Rs 1,544.4 mn and Rs 2,134.9 mn in 2020 and 2021, respectively. Dullas Alahapperuma and Gamini Lokuge served as Power and Energy Minister during this period.
The COPE members pointed out that the total expenditure of the CEB was much higher than the total revenue collected by the Inland Revenue Department. They asked for a Parliamentary Select Committee to probe the CEB but later agreed to have special meetings to examine the issue..
Pointing out that taxpayers’ money had been used in violation of specific instructions, Prof. Herath said that some special categories with ridiculous titles had been created to facilitate these illegal payments. A smiling lawmaker said that special payments had been made to those who read electricity meters correctly.
The examination also disclosed that Pay As You Earn (PAYE) tax and workers’ Advance Personal Income Tax (APIT) for 2010 to 2020 had been paid by the CEB at the expense of taxpayers’ to the tune of Rs 4.8 bn. The SLPP government in terms of a Cabinet paper submitted by Prime Minister Mahinda Rajapaksa, in his capacity as the Finance Minister abolished PAYE at the onset of this administration.
Prof. Herath pointed out that the CEB had granted a 25% salary increase last year without following laid down procedures. According to COPE, this agreement caused further burden on the taxpayer amounting to Rs 9.6 bn.
It was also revealed that the Seethawaka river power project that was to be implemented in terms of 2018-2034 long term power generation plan had been called off after spending a staggering Rs 309.19 mn on a feasibility study.
Prof. Herath said that the CEB seemed to think their enterprise didn’t come under the purview of the government.
COPE members repeatedly pointed out that there were serious discrepancies in the procurement, distribution and in various projects. Therefore, the need for special focus on the CEB was stressed by members who expressed serious concerns over the financial status of the enterprise.
Latest News
Cabinet approves establishment of Activity-Based Learning Centers at Regional Level for Commerce Education
The importance of establishing learning centers at regional level has been identified in order to achieve multiple objectives, including the development of teachers, utilization as a hub for new technology and resource sharing, enhancement of vocational and higher education opportunities, efficient utilization of limited physical and human resources, integration of new technologies with subject-specific knowledge,
sharing of limited resources to ensure equitable access to education, and development of skills in line with regional potential, thereby contributing to the qualitative development of commerce education.
Accordingly, the project to establish 100 activity-based learning centers for the enhancement of commerce education has been included in the Public Investment Programme as a major investment project in general education, with an estimated total cost of Rs. 289 million, to be implemented during the period 2026–2028.
Having considered the proposal submitted by the Prime Minister, in her capacity as the Minister of Education, Higher Education and Vocational Education, Cabinet approval was granted to establish and operationalize 25 regional centres covering all 25 districts.
Latest News
M/s. Resources Development Consultants (Pvt) Ltd appointed to prepare Feasibility Study and detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura
Approval was granted at the Cabinet Meeting held on 21-10-2025 to carry out a feasibility study and prepare detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura.
The calling of expressions for this purpose has been conducted under the national Competitive Procurement Procedure, and 8 bidders have submitted their Expression of Interest in that respect.
Following the evaluation of technical proposals submitted by the short-listed bidders, and financial proposals of the 4 eligible institutions have been opened. Subsequent to the evaluation of the aforementioned financial proposals, the Consultant Procurement Committee has recommended awarding
the consultancy for the feasibility study and preparation of detailed plans for the extension of the Kelani Valley Railway Line from Avissawella to Ratnapura to M/s. Resources Development Consultants (Pvt) Ltd at a total cost of Rs. 356.22 million (exclusive of taxes).
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the Minister of Transport, Highways and Urban Development to award the said procurement in line with the above recommendation.
Latest News
Import and Export (Control) Regulations No. 01 of 2026, issued under the Imports and Exports (Control) Act, No. 1 of 1969, to be submitted for concurrence of the Parliament
The Special Import Licence Regulations No. 01 of 2023, published in Extraordinary Gazette No. 2312/77 dated 01-01-2023, prohibit the importation of retreaded tires, including those used for aircraft.
However, the Ministry of Ports and Civil Aviation has made a request that an exemption be granted to permit the importation of retreaded aircraft tires classified under HS Code 4012.13 for Sri Lankan Airlines.
Taking into consideration essential operational and safety requirements, it has been decided to permit the importation of retreaded aircraft tires classified under HS Code 4012.13, subject to the recommendation of the Ministry of Ports and Civil Aviation, provided that such tires comply with the requirements specified by internationally recognized aviation authorities and are imported by Sri Lankan airline operators engaged in international air services under a duly executed supply agreement between the airline and a certified international supplier.
Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President, in his capacity as the Minister of Finance, Planning and Economic Development, to submit the Import and Export (Control) Regulations No. 01 of 2026, published in Extraordinary Gazette No. 2481/02 dated 23-03-2026 under the provisions of the Imports and Exports (Control) Act, No. 1 of 1969, for the concurrence of the Parliament.
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