The unbundling of Sri Lanka’s Ceylon Electricity Board (CEB) into multiple companies is anticipated to incur costs amounting to 10.6 billion rupees due to a loss in economies of scale, as noted in a tariff filing by the CEB.
Previously, under a unified structure where the CEB operated as a single integrated utility with six licenses, electricity consumers enjoyed a voluntary reduction in the legitimate Return on Assets (ROA). This reduction amounted to 10.6 billion rupees within the allowed revenues of distribution licensees during the tariff revision scheduled for July 2024.
“This benefit was made possible through economies of scale and shared operational efficiencies of the consolidated structure,” the filing stated. “With the ongoing transition, this advantage will no longer be available. In this context, the curtailed ROA should be restored to all distribution licensees.”
The CEB has forecasted a revenue deficit of 23.85 billion rupees, which is expected to be reduced to 13.09 billion rupees after accounting for a surplus of 10.76 billion rupees carried forward from a previous period.
(Colombo/Jan12/2026)
