A formal complaint has been submitted to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against Dr. Thilak Siyambalapitiya, the former Chairman of the Ceylon Electricity Board (CEB), over an alleged conflict of interest in signing a major Power Purchase Agreement (PPA). The Ceylon Today Sunday Newspaper reports.
The complaint was lodged this week by Sanjeewa Dhammika, representing the Electricity Consumers’ Association. It concerns a PPA signed on 3 April 2025 between the CEB and LTL Holdings—the parent company of Sahasdhanavi Limited—for the development of a 350 MW RLNG/Dual-Fuel power plant in Kerawalapitiya. This is the third such project to be established in the area.
According to the complaint, Dr. Siyambalapitiya signed the agreement on behalf of the CEB while also serving as the Independent Director and Chairman of LTL Holdings, creating what is described as a clear conflict of interest.
Under Section 107.2 of the CIABOC Act, No. 1 of 2023, public officials are required to recuse themselves from any transaction where a conflict of interest arises. Violating this provision can lead to penalties of up to Rs 1 million or imprisonment for a maximum of seven years.
Responding to the allegations, Dr. Siyambalapitiya told Ceylon Today that LTL Holdings is a subsidiary of the CEB, established over four decades ago, with the CEB as its majority shareholder. He argued that it has long been standard practice for the same individual to chair both entities.
“As per the requirement, the Chairman of CEB has to sign the agreement. Who else will sign it, and who else can sign it?” he asked. He further explained that such agreements are typically signed by the Chairman and a board member, noting that as LTL is fully government-owned, any authorized signatory would essentially hold the same relationship with the company.
However, legal experts quoted by Ceylon Today pointed out that despite the CEB holding a 55% stake in LTL Holdings, a Chairman representing both parties in a binding agreement presents a legal and ethical conflict. They stressed that a public official must not sign for both contracting parties in transactions where divided loyalties could arise.
Experts also noted that the CEB should have delegated the signing responsibility to a separate authorized representative. Additionally, if Dr. Siyambalapitiya participated in board deliberations or approvals concerning this agreement, it could raise further questions about the legality of the proceedings.
The 350 MW Sahasdhanavi power project is considered a crucial step towards enhancing Sri Lanka’s energy security. Once commissioned, it is expected to boost the national grid capacity and support the country’s shift towards cleaner energy sources such as Regasified Liquefied Natural Gas (RLNG).
The signing ceremony took place at the CEB Head Office in Colombo, attended by senior officials from both CEB and Sahasdhanavi Limited. In a joint statement, the developers reiterated their commitment to advancing innovation and sustainability within Sri Lanka’s energy sector.
While the technical benefits of the project are widely acknowledged, this complaint casts doubt over the governance standards and ethical compliance surrounding the deal, raising broader concerns about transparency in high-value public-private partnerships.
