Sri Lanka CEB opts for reforms without privatization under new government
ECONOMYNEXT – Sri Lanka’s state-run Ceylon Electricity Board (CEB) under the new government led by President Anura Kumara Dissanayake has opted for reforms without privatizing the utility service provider in line with the “mandate received by the current President”, the CEB said.
The proposed CEB reforms were strongly opposed by Dissanayake’s Marxists Janatha Vimukthi Peramuna (JVP) trade unions in the past citing the past government was trying the sell the state asset to the private sector.
Reforms in CEB is a key commitment Sri Lanka has made to the International Monetary Fund (IMF) in return for a $3 billion bailout package that was approved in 2023 following the island nation suffering an unprecedented economic crisis in 2022.
“CEB had to adopt to a reform process proposed by external mechanisms last year as a result of non-implementation of internal reforms within CEB for decades,” the CEB said in a statement.
“However, a great opportunity has arisen to carry out proper reforms in the energy sector in line with the social transformational mandate received by the current President of Sri Lanka,” it said.
“The Board of Directors invite everyone to join to raise a people-centric, clean and secure electricity sector while achieving the lowest electricity cost in the region in next five years under a strong single-buyer market with an Independent System Operator (ISO) and unbundled generation, transmission and distribution licensees established by an amendment to the electricity act through extensive public and stakeholder consultation without privatization of state-owned electricity sector assets.”
The new policy step was decided after an online awareness program on the electricity sector reforms was conducted by the CEB Chairman and its Board of Directors on October 23, 2024 for the entire CEB staff with the guidance of the Ministry of Energy.
“Change is a common reality; timely changes are essential for any organization as well. Proper organizational reforms with periodic evaluations are imperative by any organization in order to increase the quality of service, maintain high standards in customer satisfaction, make reasonable profits to the organization, ensure high return to the social economy, and to improve the living standards of the employees.”
“A proposal was also made to form a committee representing employees at all levels to get the active contribution of everyone for the future initiatives taken by the Ministry of Energy.”
Trade Unions affiliated to JVP had agitated long against reforms that planned with unbundling of key sectors and allowing some private investors to come in to cushion the continuous loss-making due to delays in the internal reforms.
Former Energy Minister Kanchana Wijesekera in 2023 has said the CEB is over staffed and has more than 26,000 employees whereas the entity could be managed with 5,000 workers.
A CEB-affiliated JVP trade union leader, who had led the anti-reform protests, has been contesting in the upcoming November 14 parliamentary elections under JVP. (Colombo/November 04/2024)