News
Now, electricity consumers entitled to interest on LECO deposits
Rathindra Kuruwita
The Public Utilities Commission of Sri Lanka (PUCSL) responsible for protecting the rights of electricity consumers in the country, together with the electricity service providers yesterday (7) affirmed a unique right for electricity consumers.
PUCSL Chairman Janaka Ratnayake told an event held at the BMICH that the regulator PUCSL together with Electricity Utility Provider, Lanka Electricity Company Private Limited (LECO) had launched an Interest Payment scheme for Electricity Security Deposits for LECO consumers.
Over Rs. 1.2 billion would be paid back to electricity consumers annually by the distribution licensee, Chairman of the Public Utilities Commission of Sri Lanka (PUCSL) Janaka Ratnayake said yesterday at an event in Colombo to mark the commencement of payment of interest on electricity consumer deposits.
When a person obtained an electricity connection from the CEB, he or she had to place a deposit at the regional CEB engineering office. As per Sri Lanka Electricity Act, No. 20 of 2009, the CEB had to pay consumers an interest on those deposits. Section 28.3 of the act says ‘(3) Where any sum of money is provided to a distribution licensee by way of security in pursuance of this section, the licensee (CEB) shall pay interest on such sum of money at such rate as may from time to time be fixed by the licensee with the approval of the Commission (PUCSL), for the period in which it remains in the hands of the licensee.’ It is estimated that there is over Rs. 25 billion of such deposits with the CEB.
The following is the text of Ratnayake’s speech: We have taken the steps to protect the rights of electricity consumers since the inception of the Commission in accordance with the powers vested in it. We have published the Declaration of the Rights and Obligations of Electricity Consumers and many regulatory decisions to protect the rights contained therein and to protect consumers. More than 20 different regulations, rules and guidelines have been enacted to protect consumers.
Payment of interest on electricity consumer deposits declared today is a benefit provided to the consumer under Section 28 of the Sri Lanka Electricity Act. Cooperation between the various parties were required to implement such a benefit. In the recent past, steps were taken to implement this interest rate scheme. Section 28 of the Sri Lanka Electricity Act stipulates that an electricity consumer must be paid interest on the security deposit paid by his client company or licensee.
The implementation of the decision to pay interest benefits was delayed due to various issues such as determining the interest to be paid and resolving issues.
But today we have been able to solve all those problems and The Public Utilities Commission of Sri Lanka has developed a methodology for determining interest rates in an accepted and transparent manner.
The Commission recently decided that the interest rate for this year would be 8.68 per cent. Licensed companies that provide electricity services based on that interest must calculate the interest benefit and pay it to their customers. Starting today the consumers will be able to get this unique benefit scheme.
Lanka Electricity (Pvt) Ltd, a distribution licensee, will start paying interest to its customers from today. LECO alone will pay Rs. 42 million annually to its customers as a benefit through the interest payment benefit on customer deposits.
We hope that in the future other licensees will implement this interest payment programme. When other electricity distribution licensees also implement this interest benefit scheme in the future, around Rs. 1,200 million will flow into the hands of electricity consumers annually.
On the one hand, it is a huge subsidy flowing to the country’s economy through the power industry. The Commission will also implement regulatory measures to meet the aspirations of the licensees to maintain a high quality and efficient electricity service.
The Commission was established in 2002 to regulate the multi-faceted industries of the country. The regulatory powers of the electricity industry were vested in the Sri Lanka Electricity Act passed by Parliament in 2009. Since then, the Commission has initiated the economic, technological and security regulation of the power industry.
Initially, the Commission was to be empowered to regulate the electricity industry and the water services industry. Later the petroleum industry was also listed as an area regulated by the Commission. Acts authorizing the Public Utilities Commission of Sri Lanka to regulate the water services and petroleum industries have not yet come into force.
Once we gain the powers through acts to regulate those industries, we are ready to initiate regulatory activities in the water services and petroleum industries to protect consumers.
The Commission has also been appointed as the regulatory body for the lubricant market in Sri Lanka and we provide the necessary advice and assistance to the Ministry of Energy for the promotion of the lubricant market.
Also, the Commission has been entrusted with the regulation of electric vehicle charging stations. We also have plans to expand the network of electric vehicle charging stations to protect the rights of electric vehicle owners.
This year, we are also implementing a programme to enhance the quality of professionals in the electricity sector and ensure the maintenance of high-security electricity service. At present, nearly 45,000 people are working as electricians in the country. Only by standardizing these people can the quality of home electrical systems in our country be guaranteed.
We have also paved the way for these electricians to be recognized nationally and internationally. The National Electrician Licensing Scheme prepared by the Public Utilities Commission of Sri Lanka will be introduced from this year. To obtain this license, we have implemented an expeditious process of awarding at least the 3rd level of National Vocational Qualification or NVQ 3 Certificate.
Under this expeditious programme, 2500 electricians will be issued NVQ 3 qualification and professional licenses by next July. The awarding of the license and NVQ 3 certificates to the first group of professional electricians is scheduled to take place next June under the patronage of His Excellency the President Gotabhaya Rajapaksa.
Over the next few years, we look forward to implementing special programmes for the advancement of all sectors under the purview of the Public Utilities Commission of Sri Lanka. Licensing licensees who provide utility services under our regulation are also required to improve in their respective fields.
We hope they will work with us to set the tone”.
Latest News
Heat Index at Caution Level in the Western, Sabaragamuwa and North-western provinces and Monaragala district.
Warm Weather Advisory issued by the Natural Hazards Early Warning Centre of the Department of Meteorology at 3.30 p.m. on 09 March 2026, valid for 10 March 2026.
The public are warned that the Heat index, the temperature felt on the human body is likely to increase up to ‘Caution level’ at some places in Western, Sabaragamuwa and North-western provinces and in Monaragala district.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body.
This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.

Effect of the heat index on the human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
News
Prof. Dunusinghe warns Lanka at serious risk due to ME war
Prof. Priyanga Dunusinghe has warned that Sri Lanka could face a catastrophic situation due to a rapid and sharp drop in revenue caused by the escalating Gulf war.
Appearing on Derana ‘Big Focus’ yesterday, the Professor in Economics in the Department of Economics, and Head – Department of Information Technology, University of Colombo, Dunusinghe said that that drop in remittances from the Middle East, as well as exports, should be examined against the backdrop of runaway oil prices.
Dunusinghe said so responding to interviewer Pasan de Silva who sought expert opinion on the crisis. Referring to continuing Iranian retaliatory attacks on Gulf countries hosting US military bases, the academic pointed out that approximately one million Sri Lankans were employed in the region.
Global oil prices rose to over $100 per barrel on 08 March, for the first time since the Russia-Ukraine war erupted in February 2022. By noon prices were around USD 115 per barrel.
If a consensus couldn’t be reached soon, the consequences for Sri Lanka would be devastating, Dunusinghe said, suggesting that the government should seriously consider, what he called, a relatively small but immediate fuel hike to cushion the impact of future fuel price hikes.
Dunusinghe explained that in addition to the drop in remittances from the Middle East, Sri Lanka could lose employment opportunities in the war devastated region. Responding to the interviewer, the Prof said that if the situation further deteriorated the government would have to face the daunting challenge of evacuating Sri Lankans from the Middle East.
Referring to the devastating impact of Cyclone Ditwah, Dunusinghe pointed out that in terms of the agreement with the IMF, finalised in 2023, the debt repayment would have to be recommenced in 2028. The new Middle East war has placed the country in an extremely difficult situation, Dunusinghe said, while emphasising the responsibility on the part of the government to address the issues at hand immediately.
The rapidly changing oil markets indicated that regardless of optimism expressed by the US and Israel of swift victory, the ground realities were quite different, the academic said.
By Shamindra Ferdinando
News
Power sector restructuring completed; new state-owned entities established: Govt.
The NPP governmnet has completed a major restructuring of its power sector, marking one of the most significant transformations in the country’s electricity industry in recent times, Minister of Power and Energy Engineer Kumara Jayakody says.
Addressing directors and senior officials of the newly established institutions in the power sector, while also connecting with employees of the new entities, via Zoom, the Minister said the restructuring programme had now been fully implemented with the objective of strengthening the sector, while ensuring continued state ownership.
Jayakody said the reforms represented a decisive step towards building a stronger and more resilient electricity sector, capable of meeting both present and future challenges facing the country.
“We have completed the restructuring programme that marks one of the biggest transformations in Sri Lanka’s power sector. Let us work together with dedication and commitment, within the newly established institutions, to realise the dream of ‘a prosperous country and a beautiful life,’” the Minister said.
The Minister stressed that the current government had reversed earlier attempts, by the previous administration, to break up the Ceylon Electricity Board (CEB) into 12 entities, as part of a privatisation drive.
Instead, he said, the government had established several new companies that would remain 100 percent state-owned, thereby safeguarding public ownership of the electricity sector, while introducing the structural reforms needed to modernise and strengthen the industry.
According to Jayakody, the restructuring initiative was carefully designed to ensure that the electricity sector would remain under state control while being equipped with the institutional capacity required to address emerging energy demands, technological changes and economic pressures.
He noted that one of the government’s key priorities, during the reform process, had been the protection of employee rights and privileges.
“As a government representing working people, we paid special attention to protecting the rights and benefits of employees. We assure you that the privileges and rights enjoyed by you as CEB employees will continue without even the slightest reduction when you join the new institutions,” the Minister said.
He added that the government had also taken steps to address long-standing grievances raised by employees and trade unions in the power sector.
Jayakody said many of the demands made by workers over the years had now been fulfilled, including some that had not yet been formally requested by unions or employee representatives.
“Many of the issues raised by workers in the past have now been resolved. In some instances, the government moved to address concerns even before they were formally requested by employees or trade unions,” he said.
The Minister also noted that throughout the restructuring process, the government had maintained a regular dialogue with trade unions representing workers in the electricity sector.
He said the authorities had held discussions with union representatives on several occasions and listened to their concerns before finalising key aspects of the restructuring programme.
Jayakody emphasised that the establishment of the new institutions represented a significant milestones in the development of Sri Lanka’s electricity sector.
“At this important moment, when a major step is being taken towards the development of the country’s power sector, I invite all of you to treat this as a national mission and make the fullest use of the opportunities available within these new institutions,” he said.
The Minister also expressed his appreciation to all those who had contributed to the successful completion of the restructuring programme.
He said the transformation of the electricity sector had required the cooperation and commitment of many stakeholders, including officials, employees and policymakers.
Energy sector analysts say the restructuring of the power sector is expected to play a critical role in improving efficiency, governance and long-term planning in electricity generation, transmission and distribution.
Sri Lanka’s electricity industry has faced several challenges in recent years, including rising fuel costs, supply disruptions and the need for increased investment in renewable energy and grid infrastructure.
Officials say the new institutional framework is expected to enhance operational efficiency while ensuring that the strategic assets of the electricity sector remain under state ownership.
The government maintains that the restructuring programme will ultimately strengthen the country’s energy security while supporting broader economic development.
By Ifham Nizam
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