Sri Lanka Electricity Act 2024 · As enacted · Part VI · Incorporation of Limited Companies Under the Companies Act…
18. Preparation of the transfer plan
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
The Minister shall, in consultation with the
Minister assigned the subject of Finance and the Secretary to the Treasury, and where it is deemed necessary, with the relevant stakeholders, require the Power Sector Reform
Secretariat established under section 38, to prepare a Transfer
Plan for the transition, transfer and reorganization of the
Electricity Industry in Sri Lanka (hereinafter referred to as the “transfer plan”). The transfer plan as provided for in this section and Schedule I relating to the structure of the
Electricity Industry shall contain detailed plans, proposals and strategies for the unbundling of the activities of the
Ceylon Electricity Board relating to the generation, transmission, distribution and supply of electricity.
The Power Sector Reform Secretariat shall, subject to the policy directions of the Minister prepare the transfer plan which shall comprise -
a preliminary transfer plan, which shall be approved by the Cabinet of Ministers and thereafter to be published in the Gazette on the day immediately succeeding the appointed date and shall contain all details of the vesting of the activities relating to the restructuring of the generation, transmission, distribution and supply of electricity as well as a financial plan for the vesting of assets and liabilities which shall be initially required for the successor companies to commence operations;
a final transfer plan which shall be prepared not later than two years from the appointed date and shall be approved by the Cabinet of Ministers and immediately thereafter, be published in the
Gazette. The final transfer plan shall after
Gazetting be deemed to comprise the process of implementation of all remaining matters required to complete the restructuring of the Electricity
Industry; and
The Secretary to the Treasury may, with the prior approval of the Cabinet of Ministers, and having followed a transparent and competitive bidding process as stipulated by law dispose of any shares issued or allotted to him in any successor company other than the companies referred to in items (a), (f) and (h) (ii) of Schedule I or of any rights over such shares only after the publication of the final transfer plan in the Gazette in terms of paragraph (b):
Provided that, the Secretary to the Treasury shall, in disposing any shares as specified in paragraph (c) ensure that the Government holds more than fifty per centum of the shares of the company referred to in item (e) of Schedule I.
The transfer plan prepared under subsection (1)
shall—
identify the duties and functions discharged by the Ceylon Electricity Board immediately prior to the appointed date;
in connection with the existing financial liabilities of the Ceylon Electricity Board, specify that a portion of the said liabilities which shall include supplier liabilities be allocated to the successor company to whom the hydro power generation assets of the Ceylon Electricity Board will be assigned and which shall be a company of which one hundred per centum of the shares are held by the Government of Sri Lanka and the balance portion of the said liabilities will be allocated amongst the other successor companies, in such proportions as shall be specified in the transfer plan;
separate such duties and functions of the Ceylon
Electricity Board into the following categories to enable the allocation and subsequent vesting of the following duties and functions and its employees to the successor companies referred to in section 17 -
electricity generation based on hydro, thermal and renewable energy sources;
electricity transmission services and maintenance of the National Grid of Sri
Lanka;
electricity demand forecasting and planning, procurement of electricity and sale in bulk form, economic dispatch of electricity, the management, including operation and maintenance of the System
Control Centre and National Grid of Sri
Lanka operation including transmission network expansion planning; and
electricity distribution or supply;
identify such duties, functions and activities of the Ceylon Electricity Board which are not connected directly to the duties and functions specified in paragraph (c), including but not limited to the management of employees’ pensions and employees’ Provident Fund, support services, and the distribution of existing human resources, which shall be vested in and be discharged by residual companies referred to in section 17;
allocate to a company or companies referred to in section 17 whose sole shareholder shall be the
Government of Sri Lanka –
all unassigned residual assets, liabilities, duties and functions and the remaining staff of the Ceylon Electricity Board:
Provided that, the Regulator may determine the rate of levy from the other successor companies to be paid to the residual companies to recover the administrative expenses of the residual companies and the procedure for the collection of such levy shall be as prescribed;
the functions of the Provident Fund and
Pension Fund of the Ceylon Electricity
Board as the custodian and trustee and to manage such Provident Fund and Pension
Fund and the monies required to meet the
Provident Fund obligations of the employees of the Ceylon Electricity Board:
Provided that, both the Provident Fund and the Pension Fund shall be transferred to a separate company established for such purpose and the benefits of the said
Provident Fund and the Pension Fund shall only apply to the employees on the day preceding the appointed date and former employees of the Ceylon Electricity Board:
Provided further, the governance structure for the company assigned to manage such funds shall be as prescribed and shall include representatives from employees on the day preceding the appointed date and former employees of the
Ceylon Electricity Board who shall be consulted regarding the investment decisions of such funds;
ensure that all officers and servants of the Ceylon
Electricity Board holding office in the Ceylon
Electricity Board on the day preceding the appointed date shall be-
duly identified by the Ceylon Electricity
Board;
be notified by the Ceylon Electricity Board of their proposed assignation to the respective successor companies within four months of this section comes into operation; and
be required to notify the Ceylon Electricity
Board within two months of the receipt of the notice referred to in subparagraph (ii), whether they opt to be assigned to such respective successor companies or not, and shall with effect from the date succeeding the appointed date shall be assigned to such successor companies under the preliminary transfer plan on terms and conditions not less favourable than those enjoyed by them on the day preceding the appointed date under their contract of employment with the Ceylon Electricity Board.
Where an employee does not opt to be assigned to a successor company, such employee shall be entitled to a voluntary retirement scheme and the terms and conditions of such scheme shall be &
prescribed within four months of this section comes into operation; and
identify the share capital, the management structure and the source of funds for the entities to be established under subsection (1) of section 17.
In the event an officer or servant of the Ceylon
Electricity Board on the day preceding the appointed date opts to be assigned to a successor company referred to in section 17, such officer or servant shall-
for the purpose only of calculating the pension entitlement and other retirement benefits, be deemed to have continued in office in the Ceylon
Electricity Board as from the date on which such officer or servant was employed by the Ceylon
Electricity Board until the termination of his period of service in the successor companies referred to in section 17, and shall if the period of service of any such officer or servant in a successor company when added to his previous period of service in the Ceylon Electricity Board, amounts to twenty years or more, be eligible at the end of his period of service in a successor company for the grant of pension and retirement benefits which may be applicable to such officers and servants in accordance with the rules of the Pension Fund of the Ceylon Electricity Board;
continue to make such contributions to the
Provident Fund together with such successor company as they are required to make in terms of the rules or regulations of the Ceylon Electricity
Board Provident Fund:
Provided that, any obligatory service bonds signed by any employee shall be transferred to the successor company to which such employee is assigned.
An officer or servant of the Ceylon Electricity
Board who opts for voluntary retirement from the date on which such officer or servant was notified of the proposed assignation to the respective successor company and if such officer or servant has completed eighteen years of service in the Ceylon Electricity Board, be entitled to pension and other retirement benefits which may be applicable to such officer or servant in accordance with the rules of the Pension
Fund of the Ceylon Electricity Board.
Officers and servants of the Ceylon Electricity
Board who opts to join the service of any successor company shall continue to be members of the Ceylon Electricity Board
Provident Fund and Pension Fund and shall be entitled to all the benefits thereunder.
The successor companies and the officers and servants of the Ceylon Electricity Board who have become the employees of the successor companies on the date succeeding the appointed date shall make such contributions to the Provident Fund and Pension Fund as they are required to make by rules or regulations of the Provident Fund and
Pension Fund, as the case may be, and the successor companies shall make all other statutory payments including gratuity to the employees of the Ceylon Electricity Board who have become the employees of the successor companies.
The period that an employee served with the Ceylon
Electricity Board shall be taken into consideration when calculating the statutory payments that are paybale to such employees.
Part VII
Licensing
Part VIII
Tariffs
Part IX
Wholesale Electricity Market
Part X
Consumer Protection
Part XI
Finance
Part XII
Miscellaneous
Part XIII
General
Part XIV