Sri Lanka’s Ceylon Electricity Board (CEB) has officially been split into six new state-owned companies, marking the biggest structural reform in the country’s power sector in decades. At midnight on March 8, 2026, the institution that had controlled Sri Lanka’s electricity supply for 56 years was formally dissolved through an extraordinary gazette. Established under the Ceylon Electricity Board Act No. 17 of 1969, the CEB operated as a vertically integrated monopoly overseeing generation, transmission, distribution, and system operations. Those functions have now been redistributed among six successor companies, fundamentally reshaping how electricity will be managed across the island.
The story of the CEB is not merely the tale of one organisation. It is the history of how a young nation built, managed, and ultimately chose to reshape its power infrastructure amid economic crises, political shifts, and global energy transitions.
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Early Days: Electricity Before the Board (1895–1969)
Electricity first reached Sri Lanka in the late 19th century through private enterprise. In 1895, M/s Baustead Brothers Ltd installed the island’s first public electricity supply in Nuwara Eliya for street lighting and a few wealthy homes. By the early 20th century, small hydro schemes and coal-based generation began serving Colombo and other urban centres.
After independence in 1948, the government recognised electricity as a strategic public service. The Department of Government Electrical Undertakings (later referred to as the Government Electricity Department) was formalised around 1928 and expanded rapidly in the 1950s. Major hydro projects including the Laxapana complex were developed under this departmental structure, laying the foundation for the national grid.
By the late 1960s, however, fragmented management and growing demand exposed the limitations of a departmental model. The need for a dedicated, statutory body became clear. On November 1, 1969, the Ceylon Electricity Board came into being under Act No. 17 of 1969. The new entity absorbed the functions of the former department and was tasked with developing “an efficient, coordinated and economical system of electricity supply” for the entire country.
The name “Ceylon Electricity Board” reflected the pre-republic era, but the institution quickly became known simply as CEB. For decades, the acronym itself carried the weight of national development.
The Centralised Era: Building the National Grid (1970s–1990s)
The 1970s and 1980s were defined by ambitious hydro development. The Mahaweli, Laxapana, and Samanala complexes were expanded, turning Sri Lanka into one of Asia’s early leaders in renewable hydropower. By the early 1990s, hydro accounted for over 80% of generation, providing relatively cheap and clean power.
The CEB operated as a single, vertically integrated utility handling everything from building dams and power plants to stringing transmission lines and billing consumers. This centralised model delivered impressive results: electrification rates rose from around 15% in the 1970s to over 90% by the early 2000s.
Yet challenges emerged. The 1990s brought the first wave of reform ideas. The Lanka Electricity Company (LECO) was created in 1983 as a separate distribution entity in selected areas to introduce some competition and efficiency. Private power producers (IPPs) were allowed from 1996, mainly through thermal plants using diesel and later coal.
Throughout this period, the CEB retained its core name and structure. Successive governments debated unbundling separating generation, transmission, and distribution but political resistance and union concerns repeatedly stalled deeper reforms.
Reform Attempts and Repeated Failures (2000s–2022)
The new millennium saw repeated efforts to modernise the sector. The Electricity Act of 2002 attempted to introduce a regulatory framework and unbundle the CEB, but political changes and strong opposition from trade unions led to its effective shelving.
In the 2010s, several committees and policy papers revisited restructuring. The 2013–2015 period saw serious proposals for full unbundling, but they again failed to gain traction. The CEB remained a single entity powerful, centralised, yet increasingly financially strained due to subsidised tariffs, inefficient thermal plants, and mounting losses.
The 2022 economic crisis exposed the vulnerabilities of this model in dramatic fashion. Severe power cuts, fuel shortages, and the near-collapse of the national grid highlighted years of underinvestment and poor financial management. The CEB’s losses ballooned, requiring massive government bailouts. Public anger focused not only on shortages but on the institution itself.
The Path to 2024–2026: The Final Transformation
The post-2022 recovery period brought renewed urgency for reform. The Sri Lanka Electricity Act No. 36 of 2024 provided the legal foundation for unbundling. Passed after extensive debate, the Act aimed to create a more transparent, accountable, and investment-friendly structure while keeping the new entities under state ownership.
Preparatory work continued through 2025. On March 9, 2026, the transformation became reality. The 56-year-old Ceylon Electricity Board Act was rendered invalid. Six successor companies all 100% government-owned, assumed responsibility for:
- Electricity generation (split by technology in some models)
- Transmission and network services
- Distribution (one entity now operating under the name Electricity Distribution Lanka or EDL)
- System operations and control
The change was not merely administrative. Official social media pages previously branded as CEB were rebranded almost overnight. Consumers who had known only “CEB” for generations began seeing new names on bills and correspondence.
The stated objectives remain clear: greater transparency, improved efficiency, better financial discipline, and the ability to attract private investment in generation and renewables without the constraints of a monolithic utility.
A Legacy of Service and the Challenge Ahead
For over half a century, the Ceylon Electricity Board was more than a utility, it was a nation-building institution. It brought light to remote villages, powered industrial growth, and stood as a symbol of post-independence progress. Generations of engineers, technicians, and staff dedicated their careers to keeping the lights on through economic booms, civil conflict, and natural disasters.
Yet the centralised model that served Sri Lanka well in earlier decades ultimately proved unsustainable in a modern, liberalised economy facing climate change and fiscal pressures. The transition to six companies represents the end of one era and the beginning of another.
The names have changed. The structure has been unbundled. But the fundamental responsibility remains the same: delivering reliable, affordable, and increasingly clean electricity to every Sri Lankan home and business.
Whether the new framework delivers the promised transparency and efficiency will be judged in the years ahead. What is certain is that the institution known simply as “CEB” for 56 years has written its final chapter. Sri Lanka’s power sector has entered a new phase one that will define energy security, economic competitiveness, and environmental sustainability for decades to come.
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