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As enacted
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13. Amendment of section 17 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 17 of the principal enactment is hereby amended as follows: -

(1)

in subsection (2) of that section -

(a)

in paragraph (a) of that subsection, by the substitution for the words “limited companies incorporated” and “the transfer plan”, of the words and figures “limited companies referred to in items (a), (e), (f), (g), (h)(i) and (h)(ii) of Schedule

I, incorporated” and “the preliminary transfer plan” respectively;

(b)

by the insertion immediately after paragraph (a) of that subsection, of the following new paragraph: -

“(aa) within a period of one year from the date of publishing the final transfer plan in the

Gazette as specified in section 18, the activities and all assets and liabilities of the companies referred to in items (a) and (g)

of Schedule I along with their respective duties and functions shall further unbundle as designed by the final transfer plan and vest in the limited companies referred to in items (i)(i) and (i)(ii) of Schedule

I, incorporated in terms of subsection (1).”;

(c)

by the repeal of paragraph (b) of that subsection, and the substitution therefor of the following paragraph: -

Act, No. 14 of 2025

“(b) the Secretary to the

Treasury shall be initially allotted one hundred per centum of the shares in the successor companies incorporated under this section other than the companies referred to in items (a), (e), (f), (g) and (h)(ii) of Schedule I and the company referred to in item (i)(i) of Schedule I relating to the hydropower generation in which the Secretary to the

Treasury shall be permanently allotted one hundred per centum of the shares. ”; and

(2)

by the addition immediately after subsection (3) of that section, of the following new subsections:-

“(4) The administration and management of the affairs of the company referred to in item (a) of Schedule I shall be vested in a

Board of Directors appointed by the Minister which shall consist of the following five members:-

(a)

a representative from the

Ministry of the Minister holding a post not below an Additional

Secretary or an equivalent position in that Ministry;

(b)

a Deputy Secretary to the

Treasury;

Act, No. 14 of 2025

(c)

one person who has at least fifteen years of experience in management of electricity generation systems;

(d)

one person who has at least fifteen years of experience in procurement;

(e)

one person who has at least fifteen years of experience in any one or more of the following fields: -

(i)

financial management;

(ii)

economics;

(iii)

accounting; or

(iv)

commercial law, and one of whom shall be appointed as the

Chairperson by the Minister.

(5)

The administration and management of the affairs of the company referred to in item (e) of Schedule I shall be vested in a Board of Directors appointed by the

Minister which shall consist of following five members: -

(a)

a representative from the

Ministry of the Minister holding a post not below an Additional

Secretary or an equivalent position in that Ministry;

(b)

a Deputy Secretary to the

Treasury;

Act, No. 14 of 2025

(c)

one person who has at least fifteen years of experience in management of electricity transmission systems;

(d)

one person who has at least fifteen years of experience in procurement;

(e)

one person who has at least fifteen years of experience in any one or more of the following fields: -

(i)

financial management;

(ii)

economics;

(iii)

accounting; or

(iv)

commercial law, and one of whom shall be appointed as the

Chairperson by the Minister.

(6)

The administration and management of the affairs of the company referred to in item (g) of Schedule I shall be vested in a Board of Directors appointed by the

Minister which shall consist of following five members: -

(a)

a representative from the

Ministry of the Minister holding a post not below an Additional

Secretary or an equivalent position in that Ministry;

(b)

a Deputy Secretary to the

Treasury;

Act, No. 14 of 2025

(c)

one person who has at least fifteen years of experience in management of electricity distribution systems;

(d)

one person who has at least fifteen years of experience in procurement;

(e)

one person who has at least fifteen years of experience in any one or more of the following fields: -

(i)

financial management;

(ii)

economics;

(iii)

accounting; or

(iv)

commercial law, and one of whom shall be appointed as the

Chairperson by the Minister.

(7)

The administration and management of the affairs of the company referred to in item (h)(i) of Schedule I shall be vested in a Board of Directors appointed by the Minister which shall consist of following five members:-

(a)

a representative from the

Ministry of the Minister holding a post not below an Additional

Secretary or an equivalent position in that Ministry;

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(b)

a Deputy Secretary to the

Treasury;

(c)

one person who has at least fifteen years of experience in the electricity sector corporate management;

(d)

one person who has at least fifteen years of experience in procurement;

(e)

one person who has at least fifteen years of experience in any one or more of the following fields: -

(i)

financial management;

(ii)

economics;

(iii)

accounting; or

(iv)

commercial law, and one of whom shall be appointed as the

Chairperson by the Minister.

(8)

The administration and management of the affairs of the company referred to in item (h)(ii) of Schedule I shall be vested in a Board of Directors appointed by the

Minister which shall consist of following nine members: -

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(a)

a representative from the

Ministry of the Minister holding a post not below an Additional

Secretary or an equivalent position in that Ministry;

(b)

a Deputy Secretary to the

Treasury;

(c)

three persons who have at least fifteen years of experience in any one or more of the following fields: -

(i)

financial management;

(ii)

economics;

(iii)

accounting; or

(iv)

commercial law;

(d)

four persons from employees serving in the Ceylon Electricity

Board on the day preceding the appointed date and former employees of the

Ceylon

Electricity Board, and one of whom shall be appointed as the

Chairperson by the Minister.

(9)

(a) The members of the Boards of Directors of the companies referred to in subsections (4), (5), (6), (7) and (8)

including the Chairperson, shall hold office for a period of three years unless removed from the office by the Minister.

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(b)

The Minister may re-appoint any such member including the member appointed as the Chairperson for a further term of three years.

(c)

The Board of Directors of the companies referred to in subsections (4), (5), (6), (7) and (8) and the companies referred to in items (i)(i) and (i)(ii) of Schedule

I shall submit to the Minister, a general disclosure of their interests as at the date of their appointment before assuming office as a Director of the Board of Directors.

(d)

Any Director of the companies referred to in subsections (4), (5), (6), (7)

and (8) and the companies referred to in items (i)(i) and (i)(ii) of Schedule I who has, directly or indirectly, any interest in any matter that is to be taken up before the

Board of Directors shall disclose the nature of such interest to the Board of Directors and shall not take part in any deliberation or decision of the Board of Directors with regard to that matter.

(e)

Any person other than a representative from the Ministry of the Minister or the

Treasury, shall not be appointed as a member of two or more Boards of Directors of the companies referred to in items (a), (e), (f), (g), (h)(i), (i)(i) and (i)(ii) of Schedule I.

(10)

The Boards of Directors of the companies referred to in subsections (4), (5), (6), (7) and (8), shall –

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(a)

formulate the draft of the following policies, from time to time: -

(i)

Enterprise Management

Policy;

(ii)

Investment and

Procurement Policy;

(iii)

Enterprise

Risk

Management Policy;

(iv)

Financial

Management

Policy;

(v)

Disclosure Policy;

(vi)

Anti-Corruption Policy;

(vii)

Human Resources Policy;

and

(viii)

Strategic Communications

Policy;

(b)

submit the draft policies to the

Minister to obtain the approval of the Cabinet of Ministers; and

(c)

upon the approval being granted by the Cabinet of Ministers to the draft policies, comply with such policies in respect of all matters on the administration and management of the affairs of the company.”.

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Read on from s 14