⚠️ CEB Debenture Transfer to Private Entity Sparks Legal Concerns

A formal concern has been raised by investors regarding the "assignment" of the Ceylon Electricity Board (CEB) debenture liabilities to a newly created private company as part of the sector's restructuring. • Core Issue: Under standard contract law, a debtor (CEB) cannot transfer obligations to a third party without the consent of the creditors (debenture holders). • Investor Protection: Concerns focus on whether the Government of Sri Lanka still backs the debt and if the transfer violates the original Debenture Trust Deed. • Market Impact: The lack of transparency in this administrative restructuring threatens investor confidence in Sri Lanka’s capital markets and listed securities. • Key Requirements: Stakeholders are calling for a clear legal basis for the liability transfer and confirmation of whether the original issuer (CEB) remains liable.