Economical sustainability of electrical sector reforms in Sri Lanka: a review based on historical trajectories

Abstract

Since its inception, Ceylon Electricity Board (CEB) has undergone several structural reforms to ensure the delivery efficient, coordinated and economical system of electricity supply. It has launched various initiatives, also, to fulfill those objectives. However, the financial adversities that CEB currently experiences question the success in achieving the said objectives. This paper attempted to address this gap between the original objectives and the performance strategies to achieve those objectives. The financial indicators as depicted in CEB publications were studied in a cohesive manner, in order to ascertain the possible reasons for such gap. The importance of identifying the behavior of different customer categories, especially the domestic consumer category, was noted. The heavily subsidized pricing structure, primarily aiming for social justice and welfare, should not serve its purpose. More scrutiny on the composition and response to reforms by the domestic consumer category is recommended, with provision for further studies in this arena.