Opinion
Observations on Electricity Bill
Prof. Charitha Herath’s letter to Minister of Power and Energy Kanchana Wijesekera
Having reviewed the recently published Sri Lanka Electricity Bill in the gazette, I wish to express my appreciation for the improvements made compared to previous drafts. It’s evident that considerable effort has been invested in refining this version of the bill, making it notably more comprehensive and effective.
Nevertheless, I have identified some fundamental issues in this draft as well. I believe that the forthcoming discussions on this draft will provide an opportunity to address these concerns. Given that the drafting committee appears to have finalized their positions on the matter, I suggest that the proposed changes to the bill should be subjected to scrutiny first in the Supreme Court and subsequently in the Parliament. I anticipate that certain comments and issues regarding the bill will be raised during the legal submission to the courts and in the policymaking exercise within the Parliament.
In the meantime, I wanted to share some of the issues I’ve noticed at the forefront of the bill with you. I believe your consideration, as the incumbent Minister of Power and Energy, is crucial regarding these matters. Thus, I aim to bring these issues into the national discussion surrounding this significant legislative process.
Reforms are Needed
As many would concur, I share the belief that reforms in the Power and Energy sector are paramount. This necessity has been a focal point in policy-level discussions over the past two decades. The current regulations governing the Power Sector, established under the Ceylon Electricity Board Act No. 17 of 1969 and the Electricity Act No. 20 of 2009, have highlighted numerous lapses and legal complexities. These issues have resulted in delays and, in some cases, hindered the development within the sector.
In my view, the reform requirement mentioned above was not adequately addressed by the gazetted bill on 17/4/2024. Instead, it appears to provide excessive leeway for political actors to intervene in the regulatory mechanism of the Power sector. In essence, the proposed bill could exacerbate existing difficulties in certain areas and potentially delegate decision-making power entirely to political entities.
When examining international experiences, Power sector reforms typically unfold in three stages:
1. Unbundling and corporatization, often adopting a single buyer model.
2. Establishment of a wholesale market.
3. Establishment of a retail market.
These stages represent a structured approach to reform aimed at enhancing efficiency and promoting competition within the sector.
The overarching goal of reform experiences is to transform initially highly regulated existing markets, where the regulator decides on allowed Revenue and Returns of Investment (ROI) except Power Purchasing Agreements (PPAs). Consequently, reforms typically advance towards deregulation, wherein prices are determined through competition. This progression aims to foster greater market efficiency and encourage innovation within the sector.
The gazetted Bill, dated 18/04/2024, outlines an initial proposal for unbundling and corporatization, operating within a single buyer model. Under this framework, the National System Operator (NSO) is tasked with purchasing electricity from Generation Companies (Gencos) and subsequently selling it to Distribution Companies (Discos). Additionally, the bill aims to establish a wholesale market model, wherein prices are determined through competition between Gencos and Discos. This approach signifies a pivotal step towards fostering market efficiency and promoting competition within the sector.
Given that approximately 85% of the cost of electricity in Sri Lanka is attributed to generation, it is imperative to prioritize the establishment of competition within the generation sector. Therefore, in alignment with the overarching reform expectations, it is crucial to thoroughly examine the gazetted bill. This careful scrutiny will ensure that the proposed reforms effectively address the need for competition in the generation sector, ultimately contributing to greater efficiency and affordability in the electricity market.
Some Observations
·
In order to effectively implement new reforms in the Power sector, there are two crucial aspects to consider at a conceptual level. Firstly, it is imperative to consult and involve the main stakeholders of the industry in the proposed legal and institutional reforms. It is essential to ensure that their voices are heard and that they are actively engaged in the process, regardless of whether all stakeholders are in agreement with the Bill. Secondly, it is vital to ensure that the proposed reforms adequately address the core issues at hand. Unfortunately, it is my belief that the Government has failed to address both of these highly important issues.
· The proposed bill signifies a notable shift towards increased Politicization of the Electricity Sector. It is clear that key institutions to be established under this bill will be subject to substantial political influence. For example, following the bill’s passage, entities like the Long Term Generation Expansion Plan (LTGEP), National System Operator (NSO), Power Sector Reform Secretariat (PSRS), and certain functions of the Public Utilities Commission of Sri Lanka (PUCSL) will come under direct political control.
· The independence of successor companies and corporate good governance will no longer be maintained, as management control will now rest with the Minister in Charge.
· The Electricity Reform Act no 28 of 2002(that was not implemented due to political reasons)had proposed the establishment of an independent agency known as the “Monitoring and Advisory Committee” to spearhead the reform project. This committee was intended to have the authority to advise the Minister on the appointment and dismissal of directors of the proposed successor companies. However, the recently gazetted new Bill (17/04/2024) does not include this independent mechanism, giving the Minister the power to appoint the Board of Directors of the successor companies. Furthermore, the Minister’s consent is now required for the appointment of the CEO of NSO, as outlined in Section 10 (1)(b) & (c) of the new Bill.
· The “Long Term Power System Development Plan” is formulated by NSO and then forwarded to the Minister for assessment, followed by submission to the Cabinet for approval (as outlined in the recently gazetted Bill, Section 10 (7) (b)).
· Weakening of the Regulator, PUCSL
· The PUCSL no longer holds the power to approve the “Long Term Power System Development Plan” as it has been transferred to the cabinet of Ministers, as per the newly gazetted Bill, Section 10 (7) (b).
· According to Section 3(1)(a) of the Sri Lanka Electricity Act 2009, the PUCSL has the authority to provide advice to the government on matters within their jurisdiction. Nevertheless, the recently gazetted Bill has revoked these powers and transferred them to the National Electricity Advisory Council, which will be appointed by the Minister (new Bill, Section 3 (3)).
· According to Section 20 (2) of the Bill that was gazetted in December 2023, the Regulator is required to simply “inform the Minister” when granting licenses for generation, transmission, and distribution. However, in the recently gazetted Bill, the Regulator now needs to seek the “concurrence of the Minister” before granting licenses.
· The Bill’s Section 4 (10) includes provisions that enable the bypassing of competitive tendering through the provision of incentives to select technologies.
· Illogical Timeline – proposed approach to rescind the current Acts in 6 months without any preconditions, unveiling the Transfer Plan after the specified date, and more.
· As per the new Act, the functions currently executed by CEB will be transferred to the newly formed successor companies within a maximum duration of six months. Section 1 (2) of the Act ensures automatic appointment within this timeframe.
· The process of setting up new successor companies includes drafting detailed Memorandums and Articles of Associations, reallocating assets, liabilities, and human resources, preparing new balance sheets, creating financial models for tariff development, and finalizing the incorporation of other supporting functions. The unrealistic timeline proposed in this new Act is a significant issue.
·It’s not just the impracticality, the legality of forming companies according to a transfer plan which has not been approved and gazetted is also another serious issue.
·Electricity Pricing – guaranteeing fair returns, measures to establish private monopolies, minister directs policy guidelines to encourage specific projects/technologies, no safeguards for regional trade below domestic market prices, permitting current generation licensees to engage with distribution licensees before entering the Wholesale market.
· The increase in electricity prices is tied to the requirement for a justifiable return on investment as outlined in the recently published Bill, Section 29 (5) and (9)(a). This will cause prices to rise, with the Regulator being legally required to ensure that profits are kept at a reasonable level. In times of high inflation or interest rates, electricity prices may see an uptick. The assurance of a reasonable ROI can be accomplished through tariff policies, which are not legally mandated, giving the Regulator the ability to lower profits during tough economic times.
·Granting free access and allowing Captive Generation without comprehensive study as stipulated under Section 12 could lead to the general public being unable to access cost-effective power plants, ultimately causing prices to escalate.
· Section 30(4) permits distribution licensees to engage in power purchase agreements with generation licensees before the Wholesale Electricity Market is established. The competition between distribution licensees for access to inexpensive power plants will drive up prices.
· In the December 2023 gazetted Bill, there was a provision that prohibited the acquisition of combinations of licenses without any qualifications (Section 19 (6)). However, in the new Bill, this prohibition only applies if a company owns more than 50% of the ownership. For instance, if a company owns 49% of the National Network service provider, it can still acquire a Distribution license and shares of multiple other companies as long as its ownership remains below 50%. Additionally, with the introduction of Additional Transmission Licenses, it is possible for a few companies to have control over more than 50% of the National Grid.
· Private companies have been granted Additional Transmission Licences under the new Bill, as stated in Section 14 (2). Nevertheless, Section 10 does not grant the NSO the authority to utilize transmission lines owned by these Additional Transmission Licensees in order to ensure a consistent electricity supply.
· The new Act does not include any provisions to address monopolies, anti-competitive practices, collusion, abuses of dominant position, and merger situations that could impact competition in the Electricity Industry. Rather than enacting specific laws to combat these issues, Section 28 grants the Minister the authority to issue policy guidelines.
· Additionally, as per Section 10(13)(b), it is stipulated that the terms of Electricity trading with foreign nations must receive approval from the Cabinet of Ministers. Given that this trading has a direct impact on the sovereignty of the nation, these terms should be ratified by Parliament, especially for fundamental conditions.
· The exportation of low-cost renewable energy to other countries may result in the deprivation of citizens from accessing affordable electricity. Regional trading lacks protection against prices below the local market costs.
As mentioned earlier, stakeholders and policymakers will have limited avenues for correcting the draft bill once it has been gazetted and tabled in parliament. One option is to seek determinations from the Supreme Court, while the other is to propose amendments during the Committee Stage of the parliamentary debate. However, given the current government’s approach to passing acts in parliament, there are doubts about the feasibility of making amendments through the parliamentary process. The considerable majority power of SLPP MPs is likely to heavily influence and potentially override discussions on the issue within parliament.
I urge the Honourable Minister to carefully consider the observations outlined above and take necessary steps to amend the bill accordingly from the government side. Furthermore, I strongly encourage the Honourable Minister to convey these observations to your advisory council for their expert input and recommendations in rectifying the identified issues. This proactive approach will ensure that the bill is revised comprehensively to address concerns and uphold the principles of fairness and effectiveness in the reform process.
Lastly, I would like to reference an important excerpt from Sally Hunt’s influential book, “Making Competition Work” (2002), which directly relates to the subject under discussion here: “In the US energy industry, it is fairly clear that the major problems with the old structure lay in the generation part of the industry – the efficiency of the investment decision, its regulation, and the tendency for decisions on generation to become politicised” (p. 28).
What I have observed throughout the process of drafting the new Electricity Act is a concerning trend towards politicization of decisions regarding generation. I strongly urge you to take decisive steps to halt this trend and address the issues present in the bill accordingly. It is imperative that we uphold the integrity of the legislative process and prioritize the best interests of the public and the energy sector as a whole.
Charitha Herath (MP)
Opinion
From the Lecture Hall to the Global Market: How Sri Lankan students are mastering the “Gig Economy”
Have you ever wondered how a university student, between heavy textbooks and late-night study sessions, manages to earn a professional income in US dollars? It sounds like a dream, but for thousands of Sri Lankans, it’s becoming a daily reality through online freelancing.
A recent study published in the Ianna Journal of Interdisciplinary Studies has pulled back the curtain on this digital revolution. By interviewing 21 successful student freelancers across Sri Lanka, researchers have mapped out exactly what it takes to turn a laptop and an internet connection into a thriving career.
The Rise of the “Earn-as-you-learn” Era
In Sri Lanka, the number of online freelancers has exploded from about 20,000 in 2016 to over 150,000 today. While our traditional education system often focuses on preparing students for 9-to-5 office jobs , these students are diving into the “Gig Economy” a digital marketplace where they sell specific skills, like graphic design or programming, to clients all over the world.
The Secret Sauce for Success
So, what makes some students succeed while others struggle? The research found that it isn’t just about being good at coding or design. Success comes down to six “Core Pillars”:
· A Growth Mindset: The digital world moves fast. Successful students don’t just learn one skill; they are constantly updating themselves to ensure they don’t become “outdated”
· The Balancing Act:
How do they handle exams and clients? They don’t use a magic wand; they use strict time management. Many work late into the night (from 6 p.m. to midnight) to accommodate international time zones.
· The Power of “Hello”:
Since most clients are in the USA or UK, strong English and clear communication are vital. It’s about more than just talking; it’s about negotiating prices and building trust.
· Proactive Problem Solving:
Successful freelancers don’t wait for things to go wrong. They update their clients regularly and fix issues before they become headaches.
Why This Matters for Sri Lanka
Right now, our universities don’t always teach “how to be a freelancer”. This study suggests that if we integrate freelancing modules and mentorship into our degree programs, we could significantly reduce graduate unemployment. It’s a way for students to gain financial independence and bring much-needed foreign currency into our economy while still in school.
You Can Do It Too
If you’re a student (or the parent of one), the message is clear: the global market is open for business. You don’t need to wait for graduation to start your career. With a bit of flexibility, a willingness to keep learning, and a proactive attitude, you can transition from a learner to an earner.
The Research Team Behind the Study
This groundbreaking research was conducted by a dedicated team from the Department of Business Management at the SLIIT Business School (Sri Lanka Institute of Information Technology). The authors of the study include:
· Lihini Niranjana Dasanayaka
· Thuvindu Bimsara Madanayake
· Kalana Gimantha Jayasekara
· Thilina Dinidu Illepperuma
· Ruwanthika Chandrasiri
· Gayan Bandara
by Ruwanthika Chandrasiri
Opinion
Is India a ‘swing state’? A response
In an article titled “India shaping-up as model ‘swing state” (The Island 29.01.2026) Lynn Ockersz says, “Besides, this columnist would go so far as to describe India as a principal ‘Swing State.’ To clarify the latter concept in its essentials, it could be stated that the typical ‘Swing State’ wields considerable influence and power regionally and globally. Besides they are thriving democracies and occupy a strategic geographical location which enhances their appeal for other states of the region and enables them to relate to the latter with a degree of equableness. Their strategic location makes it possible for ‘Swing States’ to even mediate in resolving conflicts among states”.
A ‘swing state’, as in elections, should be able to decisively influence the final outcome. In the context in which India is recognised as a ‘swing state’ the final outcome should first be regional and then, if possible, extend to the rest of the world. And the desirable outcome must entail regional peace, cordial relations and economic stability which would constitute the most vital needs for any part of today’s world. Military power should not feature in the equation, for more often than not, such power is used to brow beat into submission the weak and the poor.
India no doubt is growing fast to be a global economic power and militarily also it is way ahead of the region. Its democracy, in the sense that democracies are measured in today’s world, also may be as the columnist says “thriving”. However, periodical elections, however fair they could be, should not be the sole criterion to judge democracy. If democracy cannot solve the problem of inequality it may lose its credibility as a mode of good governance. As a means of finding who rules, the system may be satisfactory but the other vital components of democracy, such as equitable wealth distribution, if lacking, the system may not serve its purpose.
Inequality in India is among the highest globally, with the top 1% owning nearly 40% of national wealth and the top 10% holding roughly 65% of total wealth and 58% of income. While the economy grows, the bottom 50% receives only 15% of the income. This disparity, driven by wealth concentration and low female labour participation, persists across class, caste, and gender. The income gap between the top 10% and the bottom 50% remained stable, with no significant reduction in inequality over the last decade.
India ranks very low in gender parity (127 out of 146 countries in the Global Gender Gap Report 2023). Female labour force participation is very low, at 15.7% (though government data suggests 41.7% by including agriculture and unpaid work). Women earn significantly less than men, working 53 hours per week compared to 43 for men. Inequality is intensified by existing social divides based on caste, religion, region, and gender. Access to healthcare is limited for many, with 63 million people pushed into poverty annually due to costs. Approximately 74% of India’s population could not afford a healthy diet in 2023. Roughly 64% of the total Goods and Services Tax (GST) in India comes from the bottom 50% of the population, whereas only 4% comes from the top 10% (Global Inequality Report 2024).
This sad state may not be the fault of democracy but the economic system of all so called democratic countries. The other three countries, Indonesia, South Africa and South Korea, that the columnist has named as suitable to be ‘swing states’ are no better. Neoliberalism and democracy are increasingly viewed by critics as an “evil nexus” or a destructive pairing, where the logic of the free market—privatisation, deregulation, and austerity—subverts the principles of democratic self-governance and social equality.
However, my main argument concerns the more important qualities that a country must possess to qualify as a ‘swing state’; the capacity to lead from the front in campaigning for peace and cordiality in the region. In this regard India fails miserably. The past with regards to good neighbourliness, where mighty India is concerned, tells a sad story. How it tried to solve the ethnic problem in Sri Lanka may be etched in the minds of those who lived in that era. The “parippu-drop” followed by gun-boat diplomacy saved the LTTE enabling it to continue with its murderous terrorism aimed at dividing the country. It was India who provided the initial “infra-structure” for training of terrorists who waged a thirty year war in Sri Lanka, committing brutal genocide against the Sinhalese and Muslims and not sparing the Tamils as well. India did not lift a finger to stop the bloodletting. Then it rammed the 13th A down our throats as a solution to the problem but did not keep to its terms and conditions which required it to disarm the LTTE. 13th A hangs over our head like the Sword of Damocles and India doesn’t fail to remind us about it from time to time. And we are burdened with the white elephant of provincial councils. Moreover, evidently India continues to interfere in our internal affairs, apparently colluding with the US, it may have had a hand in the regime change in Sri Lanka in 2022 (Shamindra Ferdinando, The Island, 04.02.2026). Another matter that appears to be perniciously secretive is that the Indian government doesn’t want the Sri Lankan government to reveal to its people the contents of the defence agreement it has entered into with the latter, as if people didn’t matter !
Now that tiny Sri Lanka is weakened and pliable after suffering multiple crises, India comes to its aid at the slightest mishap, very much like the hero who comes to the rescue of the damsel in distress, seemingly competing with other suitors. It doesn’t want the damsel to fall into the arms of China, given its geopolitical beauty.
Take the case of the other neighbours of India, does it have the capacity to swing, for instance, Pakistan into at least a position of less animosity. And what about its eastern neighbour, Bangladesh? They can’t even play cricket. Relations between India and Bangladesh, are currently under severe strain as of early 2026, driven by the ousting of former Prime Minister Sheikh Hasina, who has been given asylum in India to the chagrin of Bangladesh. Tensions are high due to attacks on diplomats, stalled visa services, water disputes, and alleged interference. The unresolved sharing of the Teesta River and other transboundary rivers remains a major contention, with Bangladesh accusing India of managing these to its detriment. Concerns exist in New Delhi regarding Bangladesh strengthening ties with other nations like Pakistan, seen as a shift away from Indian influence (Altaf Moti, 2026).
Coming back to the conflict with its western neighbour Pakistan, since the 1947 partition, both countries have claimed Kashmir, a region inhabited by a majority Muslim population but initially ruled by a Hindu Maharaja, leading to wars in 1947, 1965, and 1999. India accuses Pakistan of supporting militant groups in Kashmir, a claim Pakistan denies, which has frequently led to military escalations, such as the 2019 Pulwama incident and 2025 strikes. The Indus Waters Treaty is under strain, with potential for conflict over control of water resources. Both nations are nuclear-armed, raising international concerns about regional stability. Recent tensions included increased cross-border firing, drone warfare, and suspected militant attacks in Kashmir, leading to retaliatory missile strikes. The conflict remains a major geopolitical issue, with tensions frequently escalating due to nationalist sentiment and a lack of diplomatic progress (Britanica, 2026).
Another matter of relevance is that India-Pakistan-Afghanistan relations are defined by a complex, triangular, and competitive dynamic. Following the 2021 Taliban takeover, India has adopted a pragmatic, security-focused approach, delivering humanitarian aid to Afghanistan via Iran to circumvent Pakistan. Meanwhile, Pakistan-Afghanistan ties have deteriorated over border disputes, prompting Kabul to seek warmer relations with India as a counterweight to Islamabad. Without formally recognising the Taliban, India has re-established a technical mission in Kabul to secure its interests, monitor anti-India groups, and maintain developmental influence, which directly challenges Pakistan’s historical influence in the region. Is such manoeuvring of regional relations a virtue of a ‘swing state’!
Paradoxically, India is developing a special friendship with the murderous regime of Netanyahu in Israel focussing on defence and anti-terrorism. Indian prime minister is planning to visit Israel towards the end of this month which would obviously boost the image and credibility of a ruler who has committed genocide of the Palestinians. The barb no doubt is intended to prick Pakistan. Could such a country bring peace to the region, which it must if it is to qualify as a ‘swing state’.
India seems to have good relations with its northern neighbour, little Nepal, though minor but persistent issues remain. Disputes, notably regarding the Kalapani-Limpiyadhura-Lipulekh area, have caused tensions. Nepal has, from time to time, requested, a revision of the 1950 Treaty, viewing it as unbalanced. Growing influence of other foreign powers (particularly China) in Nepal poses a strategic challenge for India.
The other northern neighbour, the giant, is a different kettle of fish. India has fought several wars with China and there are frequent border skirmishes. The rivalry between these two giants is second only to that between the US and China. The war for markets, influence and hegemony between these countries may one day tear the world apart.
India seems to be having border disputes with most of its neighbours. Fortunately, we have no common border with it but there is Katchatheevu, on which they have recently made a claim.
India being the big brother must take the initiative to resolve the disputes it has with its neighbours and work towards lasting peace in the region. The inability to do so reflects, more than the external factor, the internal depravity that plagues its politics. One has only to listen to its political leaders during election times to gauge the depth of racism they descend to in order to swing the votes. This phenomenon is more evident in their own ‘swing states’. This racism cannot be confined to its borders, it has to cross the borders and be projected to the neighbourhood, if the politicians are to appear to be truly patriotic. Thus, the border disputes and acrimony continue.
If peace, cordiality and economic stability are the desirable goals for the region – one cannot think of anything more important than these – India may not be the ‘swing state’ that could give leadership to the struggle that would finally bring these qualities to the region.
by N. A. de S. Amaratunga
Opinion
Sovereignty without Governance is a hollow shield
Globalisation exposes weakness and failed governance; and invites intervention – A message to all inept governments everywhere
The government of Burkina Faso has shattered the illusion of party politics, dissolving every political party in the nation. Its justification is blunt: parties divide the people, fracture sovereignty, and allow corrupt elites to hijack the sacred powers that belong to the citizenry.
This is not an aberration. It is the recurring disease of fragile states. Haiti, Somalia, Sudan, Venezuela, Sri Lanka—their governments collapse under the weight of incompetence, leaving their people abandoned and their sovereignty hollow. These failed states do not merely fail themselves; they burden the world. Their chaos spills across borders, draining the strength of nations that still stand.
Globalisation does not forgive weakness. It exposes it. And as global opinion hardens, a new world order is taking shape—one that no longer tolerates decay. The moment of rupture came when US President Donald Trump seized Nicolás Maduro from his Venezuelan hideout and dragged him to face justice in America.
Predictably, the chorus of populists cried “oil!” They shouted about imperialism while ignoring the rot of Maduro’s failed government and his collapse in legitimacy. But the truth is unavoidable: if Venezuela had been competently governed, Trump would never have had the opening to topple its leadership. Weakness invited conquest. Failure opened the door.
Singapore offers the perfect counterexample. It is perhaps the best-governed nation on earth, and for that reason it is untouchable. Strong governance is the only true shield of sovereignty. Without it, sovereignty is a brittle shell, a flag waving over ruins.
Trump’s precedent will echo across continents. China, Russia, India—regional powers are watching, calculating, preparing. The message is unmistakable: Sovereignty is conditional. It is not guaranteed by history or by law. It is guaranteed only by strength, by competence, by the will to govern effectively.
This is the revolutionary truth: nations that fail to govern themselves will be governed by others. The age of excuses is over. The age of accountability has begun. Weak governments will fall. Strong governments will endure. And the people, sovereign and indivisible, will demand leaders who can protect their destiny—or see them replaced by those who can.
By Brigadier (Rtd) Ranjan de Silva
rpcdesilva@gmail.com
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