The government has drawn up a comprehensive plan to reduce electricity tariffs through the ongoing restructuring of the power sector, with a strong focus on expanding renewable energy generation and improving hydropower efficiency, Power and Energy Minister Anura Karunathilaka said on Thursday.
The long-term objective of the restructuring programme was to lower generation costs and pass the benefits on to consumers through reduced electricity bills, the Minister said.
He made the remarks at a ceremony held to award financial compensation to Ceylon Electricity Board employees who opted for voluntary retirement under the government’s power sector restructuring programme. The event was held at the EDL D4 Auditorium in Dehiwala.
“One of the key objectives of restructuring the Electricity Board is to improve efficiency. Through this process, we are establishing institutions capable of delivering a higher standard of service to consumers while fulfilling the promises made to the people of this country,” the Minister said.
He stressed that the government was committed not only to modernising the sector but also to honouring all assurances given to employees during the restructuring process.
“We have been able to fulfil the promises made to the employees as well. I sincerely wish that all those receiving retirement compensation today will realise their hopes and aspirations,” he added.
Increasing the contribution from renewable energy sources while ensuring more efficient utilisation of hydropower would significantly reduce generation costs in the future, the Minister said, enabling relief to consumers burdened by high utility bills.
According to the Ministry, financial compensation was awarded to 1,898 CEB employees who chose voluntary retirement under the restructuring initiative, marking one of the most significant workforce transitions in Sri Lanka’s power sector in recent years. Deputy Minister of Power and Energy Arkam Ilyas, heads of successor power sector institutions and several senior officials also attended the event.
The 1,898 retiree figure aligns with the Rs. 8.5 billion compensation package for 1,896 CEB staff disclosed on May 11 and follows the first phase of VRS payouts that began on May 15. The restructuring drive runs in parallel with the Minister’s earlier warning that residential consumers face a 7.29% tariff hike from a pending NSO submission and the broader policy framework for a fuel and electricity tariff adjustment mechanism.
