International donors raise alarm over changes to Electricity Act

World Bank/IFC, ADB and JICA jointly make representations to Energy Minister Flags off concerns over amendments concerning Permanent Government Ownership; National Transmission Network Service Provider; Distribution Company; Role of the regulator in tariff setting Cautions changes could undermine overarching objectives of the Electricity Act and the commitments made by Govt. ensuring high quality of service to consumers at affordable prices Move could weaken attractiveness of Sri Lanka for investors, contrary to Govt.s intentions

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THREE leading global donors have expressed concerns over some of the amendments to the Electricity Act urging the Government reconsider the move to ensure alignment with good governance, competitive procurement, regulatory independence, and financial sustainability.

In a strong stand the World Bank and IFC Country Manager Gevorg Sargsyan, Asian Development Bank (ADB) Country Director Takafumi Kadono and Japan International Cooperation Agency (JICA) Chief Representative of Sri Lanka Office Kenji Kuronuma have jointly written to Energy Minister Engineer Kumara Jayakody making their stand clear and calling for necessary action by the Government.

The expression of concern and recommendations were after the three donors acknowledging the Government's and its key agencies continued engagement over the past several months on the Electricity Act 2024 Amendments published in the Gazette on 16 May and before the Parliament for consideration.

The trio believes the some of the amendments proposed impede the original intent and spirit of the Electricity Act regarding sector efficiency, good governance, and financial sustainability, all with the ultimate objective of ensuring a high quality of service to consumers at affordable prices.

In the spirit of supporting the Government in the smooth implementation of the final version of the Act and ensuring a strong energy sector for the future, the donor agencies had put in writing their recommendations with copies to several Members of Parliament such as the Members of the Sectoral Oversight Committee on Infrastructure and Strategic Development, officials of Ministry and Finance and Ministry of Energy.

For clarity and proper perspective, the Daily FT publishes below some of the contents of the letter