Sri Lanka’s state-owned power utility, the Ceylon Electricity Board (CEB), has been flagged for serious financial irregularities after the Auditor General’s annual report revealed the board paid Rs. 1,060.02 million (Sri Lankan rupees) in employee allowances during 2024 without approval from key government oversight bodies. The report further alleges that these allowances were not included in the list officially sanctioned by the Cabinet, raising questions about governance and fiscal accountability in a country already under international economic scrutiny.
The audit indicates that the CEB bypassed formal approval channels, including the Salaries and Personnel Commission and the Department of Management Services, to issue significant allowance payments to staff. The revelation underscores ongoing concerns about public sector financial management in Sri Lanka, a nation still navigating the aftermath of a deep economic crisis that has drawn global attention and aid.
In addition to the unapproved allowance payouts, the Auditor General noted that Rs. 191.3 million was paid as retention allowances to 601 officers who were already entitled to professional allowances. This practice directly contradicts a Cabinet decision that prohibits paying professional allowances to employees already receiving retention benefits, suggesting a systemic disregard for established policy.
Even more striking is the report’s finding regarding employee housing loans. It states that two-thirds of the interest on property loans taken by CEB employees between 2013 and 2024—amounting to Rs. 19,384.8 million—was paid without approval from the Treasury. The scale of these payments points to a long-term pattern of unauthorized financial decisions, potentially burdening public resources and undermining fiscal discipline.
For international observers, the report highlights broader concerns about transparency and governance in state-owned enterprises, especially those central to national infrastructure. The CEB is critical to Sri Lanka’s energy stability, and financial mismanagement within such institutions can have far-reaching implications for economic recovery, investor confidence, and international support.
The CEB has yet to provide a detailed public response to the Auditor General’s findings. However, the report is likely to trigger calls for stronger oversight and reform, particularly as Sri Lanka seeks to rebuild its economy and restore confidence among global partners. The allegations also come at a time when the country is under pressure to demonstrate improved governance and accountability to international lenders and donors.
