Lanka Transformers to stay under CEB

Wasantha RAMANAYAKE

The Director Board of the Ceylon Electricity Board (CEB) decided not to sell the CEB owned 63% shares of its subsidiary company Lanka Transformers Ltd, a Power and Energy Ministry official said

The Ministry official also reiterated that there was no truth in the allegations of certain groups that the CEB would be privatised when the government has taken a policy decision under Mahinda Chinthana. not to privatise state institutions.

The official said the CEB has obtained diesel for power generation under a credit facility from the Ceylon Petroleum Corporation and the CEB currently owes the CPC around two billion rupees. He added that the CEB had to sell electricity to its consumers at a special concessionary price and incurred a huge loss due to the higher oil prices that prevailed in the world market.

Although the Cabinet has approved the Treasury suggestion to sell the 63% shares of the Lanka Transformers Ltd. owned by the CEB in oder to settle long outstanding debts of the CEB, the CEB Board has decided not to implement the suggestion of the Treasury, the official noted.