New Electricity Act comes into force

Sri Lanka’s new electricity law took effect on Monday, aimed at ensuring a continuous and affordable supply of electricity while reducing greenhouse gas emissions and promoting renewable energy, the Parliament Secretariat said.

Speaker of Parliament Dr. Jagath Wickramaratne certified the Sri Lanka Electricity (Amendment) Bill on 18 August, following its passage on 6 August.

The legislation, now the Sri Lanka Electricity (Amendment) Act, No. 14 of 2025, replaces the National Electricity Advisory Council with a National Electricity Policy as part of the country’s broader National Policy on Energy. It also renames the “Wholesale Electricity Market” as the “National Electricity Market.”

The law replaces a 2024 Act, which was part of a package of IMF-backed reforms designed to restructure the Ceylon Electricity Board (CEB). It enables unbundling of services, allows private sector participation across generation, transmission and distribution, and seeks to improve efficiency, transparency and accountability.

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