The Hon. Kabir Hashim

¶ 01 Hon. Deputy Speaker, before replying to the Minister, let me note: when Rohana Wijeweera’s name was mentioned, Hon. Bimal Rathnayake reacted, but today the JVP stands not with Wijeweera’s policies; they follow Trump-style populism and conditions.

¶ 02 On substance: Energy is vital for competitiveness and social advancement. At times, politicians and officials acting for private interests twist national policy using populist slogans—national security, people’s power, anti-private capital, anti-privatisation, foreign aggression—to protect corrupt monopolies. Reforms are often needed to break that nexus. We believe today’s Amendment is presented as such a reform, but we must state the Opposition’s position and briefly revisit context.

¶ 03 The CEB structure dates from 1969 under Dudley Senanayake’s Government. Globally, in the 2000s, many countries unbundled power sectors. In Sri Lanka, under the 2001 UNP Government (PM Ranil Wickremesinghe; Minister Karu Jayasuriya), a progressive Bill was presented—recognised by experts as excellent. But the JVP unions and certain CEB unions opposed it and even brought down the Government. The result: from 2004-2024 Sri Lanka had among the highest regional electricity tariffs, a burden on the Treasury; in 2021 security of supply collapsed; by 2023 Treasury had to assume LKR 1,260 billion of CEB debt; in Feb 2025 the Cabinet (NPP participation) decided to pass a further LKR 1,820 billion burden to consumers under the IMF EFF Third Review—contrary to earlier rhetoric. Petroleum levies of LKR 50/litre continue. And now you bring this Amendment.

¶ 04 The CEB is a vertically-integrated monopoly with minimal accountability—hence the problem. The 2024 Act by then Minister Kanchana Wijesekera was incomplete and we opposed parts, proposing amendments that were rejected. However, we appreciated the courage to lay a reform foundation before an election.

¶ 05 Why do we oppose the present Amendment? The 2024 Act attempted to unbundle—four generation companies, four distribution companies, a National Grid Operator and System Operator—while keeping regulation and control with Government. Your Amendment retreats: it re-concentrates 100% generation under “Transco/NTNSP” and keeps 100% distribution under CEB’s monopoly structure—an outright step back. Moreover, final unbundling of a Parliament-created SOE after Supreme Court scrutiny is now left to arbitrary administrative actions by unelected officials. That is unacceptable.

¶ 06 On the NEAC: in 2024 it was to be a Cabinet-approved expert council, with our proposal to subject it to Constitutional Council oversight—then Opposition Members agreed. Now, the Amendment allows the Minister to appoint ad hoc committees not subject to the Bribery Commission or administrative procedures—outside state law—undermining accountability.

¶ 07 On dispatch: historically we used “least-cost dispatch.” Your Bill replaces it with “security-constrained economic dispatch” without defining “economic dispatch.” Borrowing undefined US jargon allows externalities to be loaded onto consumers. We oppose this ambiguity.

¶ 08 On LTL Holdings Ltd and Sri Lanka Energies (Pvt) Ltd: the 2024 proposal was to move CEB-owned stakes to the General Treasury to enable investment and independence. We proposed this at the Sectoral Oversight Committee. Your side opposed it. All parties later agreed LTL should move under a residual/shared services company, but the Attorney-General’s Department representative objected, citing inconsistency with Article 78(3) without explaining how. I table the letter and ask the Attorney-General to clarify to the House.

¶ 09 Before this Bill even operates, politicised monopolistic officialdom is being strengthened. We also see an attempt to sideline renewables. The Minister himself insinuated rooftop solar is just a business. In fact, solar is now among the cheapest sources. ADB has lent hundreds of millions of dollars to strengthen the grid to absorb more solar; its Renewable Energy Development Master Plan targets 70% RE by 2030. The approved Least-Cost Long-Term Generation Expansion Plan indicated battery storage should have been procured last year; it has not been done, while solar is sidelined.

¶ 10 Instead, an LNG project is being pushed—reviving a 2018 tender involving CHEC and Engro. Engro has reportedly exited, which should invalidate the tender under procurement rules. Yet, in an interview, the Secretary has said the project is approved but did not know the unit cost, partner status, or first-year O&M with fuel. PUCSL has written stating LNG unit cost would be around LKR 43 per unit, while renewables can deliver around LKR 18. CHEC has no track record in LNG power; deviations from original tender terms are being entertained. This raises serious legal and integrity concerns.

¶ 11 Finally, by 1976 less than 10% of households had electricity; through major hydropower projects and later the “Dipaloka” programme (2001-2004), household electrification rose to 70% by 2005, 90% by 2011, and 100% by 2016 under Yahapalana. We can be proud of that. But your side in the late 1980s literally blew up transformers and plunged the country into darkness; in 2001-2003 you helped scuttle Karu Jayasuriya’s progressive Bill, causing losses of LKR 50 billion to the CEB. Learn from history; this Amendment will take us backwards.

¶ 12 Thank you.