COLOMBO, Sri Lanka's Parliament on Thursday passed the much-contested electricity bill, which seeks far-reaching reforms in the energy sector with higher targets for renewable energy capacity.

The bill was passed, with 103 MPs voting in favor and 59 against.

Opposition MPs urged to delay the presentation, citing the Supreme Court declaring several sections unconstitutional.

Energy Minister Kanchana Wijesekera said the government agreed with the amendments suggested by the Supreme Court and would incorporate them.

The Bill provides for reforms in the energy sector primarily by splitting the state power utility, the Ceylon Electricity Board (CEB) into eight entities. Trade unions said the move was aimed at privatizing the energy sector at the cost of national security.

The CEB was one of the main state institutions that the IMF wanted to reform in the ongoing bailout program.

The minister was accused by the opposition during the debate in Parliament of having too much power in energy management.

The government argued that the bill, if enacted, would improve efficiency and pave the way for private sector participation in power generation, transmission and distribution.

Trade unionist Ranjan Jayalal said, "This bill will not provide any benefit to consumers – its aim is to split the CEB into different units and then hand it over to the private sector."

Newly formed political entity 'Sarvajana Balaya' said that the bill would lead to integration of Sri Lanka's power grid with India and hence is a threat to national security.