Minister drops bombshell, CEB Rs. 93b in debt

Power and Energy Minister W. D. J. Seneviratne dropped a bombshell when he disclosed in an exclusive interview with our Sunday Observer staffer Anura Maitipe that the Ceylon Electricity Board (CEB) is in debt to the tune of Rs. 93 billion to State Banks, Petroleum Corporation and the private power supply organisations. The Minister added that the CEB has become a white elephant with the entire burden on CEB's shoulders.

Following are the excerpts of the interview:

Question: How could the CEB come out of this rut?

Answer: We have to make major changes in the management system with the implementation of a proposed concept paper.

Q: Did you present this draft bill in the House?

A: Yes, it was presented in the House and it was referred to the consultative committee before the second reading. At the committee stage other parties will come up with amendments to the bill.

Q: Who prepared the draft bill?

A: It was prepared by a Special Committee appointed by the President that consisted of officials of the CEB, experts in the power sector and trade union leaders.

Q: How long can the CEB run like this on public money?

A: The CEB is in a deep financial crisis and owes 93 billion to state banks, Petroleum Corporation and power supplying companies. As a result the CEB has become a huge burden to treasury.

Q: Some trade union leaders expressed fear over this draft bill as it could lead to the privatisation of the CEB?

A: They need not harbour such fears. The government has taken a policy decision not to privatise the CEB. The draft bill is to safeguard state ownership of the CEB.

Q: How will the draft bill be a remedy to the CEB crisis?

A: With the implementation of the draft bill the CEB will be able to convert into a profit making enterprise to minimise waste of funds, energy and manpower. Unless we move in this direction not only the CEB but the Petroleum Corporation will also have to face a financial crisis.

Q: What are the other countries that have adapted to overcome such crises in the power sector?

A: The best example is our neighbouring India. They have applied this method in 18 states that turned out to be very successful. Therefore, I urge all officials and trade union leaders of the CEB to work as a team to make the CEB a profitable organisation.