Supreme Court orders CEB to pay interest on consumer deposits

The Supreme Court of Sri Lanka has ordered the Ceylon Electricity Board (CEB) to pay interest on the security deposits collected from consumers when providing electricity services.

Accordingly, the Supreme Court has directed the CEB to take steps to pay the annual interest accrued on these security deposits to consumers.

As stated in a motion submitted by the CEB to the court on January 30, 2024, a three-member bench, including Justices S. Thurairaja, Sobitha Rajakaruna, and another, ordered that an annual interest rate of 11.67%, which the CEB receives from the Central Bank of Sri Lanka (CBSL), should be paid to both domestic and other electricity consumers.

The Supreme Court issued this order during a hearing of a fundamental rights petition filed by the Electricity Consumers’ Association, its Chairman Mahesh Bandara Ilangasinghe, and Secretary Prasad Bhathiya Amarakoon.

The petition sought to ensure that consumers receive the annual interest on their security deposits as stipulated under Section 28(3) of the Electricity Act.

The Minister of Power, the Secretary to the Power Ministry, the Public Utilities Commission of Sri Lanka, and the Attorney General were named as respondents in the petition.

Senior Attorney Dr. Chandranath Dabare represented the petitioners, while Deputy Solicitor General Sureka Ahmed appeared on behalf of the respondents.