‘Outcome of proposed CEB reforms akin to what happened to Russia with Gorbachev reforms’

SJB MP Patali Champika Ranawaka told Parliament on Thursday that the government’s plans to restructure the Ceylon Electricity Board would certainly bring about disastrous consequences.

“These privatization plans, if permitted, would end up in a disaster.  This would have the same consequences like how Russia suffered after Mikhail Gorbachev reformed that country,” Ranawaka said.

He said that as per a recent Cabinet decision the CEB would be broken up to 18 companies and some of its work would be given to four other companies. “It is certain that this move would bring about disastrous consequences not only for the country’s electricity sector but also for many other aspects, people would find it hard to get water for drinking and agriculture because most water sources would be exploited by private companies in the name of power generation,” he said.

Ranawaka said that a committee report has been released to break the CEB and its affiliated bodies into 18 companies and four institutions. The Cabinet has approved this report. The CEB would be broken down to 22 institutions. This is nothing but dissolving the CEB. Power generation would be given to six main companies. The first would take over the Kelani River hydropower generation including the Lakshapahana, Maussakelle, Canyon and Broadland. The second will take over the Mahaweli complex including Kotmale, Victoria, Randenigala and Polgolla. Third company would be set up at the Samanalawewa complex and CEB owned plants there. Fourth would be the Coal Power Complex of the Lakvijaya Power Plant in Puttalam, CEB’s Thermal Power plants at Kelanitissa and Sapugaskanda would be taken over by the fifth and the sixth would be the Wind power plant in Mannar, Ranawaka said.

He said that people should not allow the privatisation of the Kelani or Mahaweli Rivers because that would deprive many provinces of drinking water. He said that people of the Colombo and Gampaha Districts are supplied water from the Kelani River. The Mahaweli River supplies the Mahaweli region farmers with water. After selling these to private companies, the top priority of those companies would be generation of power. What would happen if they cannot supply water to Colombo or any of these places, what will happen?

“The most dangerous thing about this is the privatisation of hydropower. The public should not let this happen because we have finished paying for the Kelani River-based Laxapana Power Plant, and we have finished paying for the Mahaweli Power Plants. The Government has no right to sell these. These are the people’s national resources.  Privatising these resources would be a serious threat to national security,” Ranawaka said, adding that dissolving the CEB is similar to Gorbachev dissolving Soviet Russia.

Ranawaka said that the truth about the restructuring of the CEB would be taken up by the Economic Stabilisation Committee of parliament under his watch and international experts have been invited to be present in the Committee on Dec 13 and invited all MPs to attend the session to learn the reality.Power Minister Kanchana Wijesekera said that restructuring of the CEB has been accepted by all as a necessity. This has to be done to increase efficiency. Without increasing efficiency it is impossible to control the electricity prices.  Minister Wijesekera accused Ranawaka of misleading the House.