Govt reiterates CEB will not be privatised

The Cabinet of Ministers met yesterday to discuss the restructuring of the Power and Energy sector and proposals to restructure and develop the Ceylon Electricity Board as the Cabinet Paper of March 22,2005.

The JVP members opposed and walked out of the meeting.

The Cabinet reiterated that the CEB will not be privatised under any circumstances as a Two Thirds Parliamentary majority would be required.The Cabinet further decided that the CEB should be further developed by way of a strong management which will make it financially more viable,provide a more efficient and better service and provide elcectricity to the consumer at a concessionary rate,thus making the Power and Energy Sector more vibrant.

The CEB recorded a loss of Rs. 39.3 billion in 2004 and was subsidised with loans provided by the Bank of Ceylon.

The CEB has debts by way of loans amounting to more than Rs. 90 billion and this has compelled the CEB to charge an additional Rs.2.79 per unit from the consumer.

It was also decided that a separate company be set up under the control of the CEB in order to restructure the sector and not to privatise the CEB.

It was also decided to present a Bill in Parliament that no future government will be allowed to privatise any State sector institution or organisation in the future.

A Parliamentary Committee comprising of Finance Minister Dr. Sarath Amunugama,Power and Energy Minister Susil Premajayantha and Advanced Technology Minister Rohitha Bogollagama has been appointed to look in to this matter and submit a report.

The Cabinet also decided that this Cabinet Paper should come in to effect by November 1 and reiterated that there will be no privatisation of the Ceylon Electricity Board or any other State enterprise.