The Hon. Janitha Ruwan Kodithuwakku - Deputy Minister of Ports and Civil Aviation

¶ 01 Thank you, Hon. Presiding Member.

¶ 02 Many laws in our State machinery are 40-50 years old. We saw how past amendments were attempted—often threatening State assets and worker rights, triggering protests. We opposed those because if worker rights, State property and national security are threatened, we must oppose. A law must be forward-looking by 10-15 years. Within nine months of taking office we have brought this Bill to Parliament with wide inputs—not only from Pubudu Niroshan but through the Oversight Committee and many others—balancing sovereignty, national security, State assets and worker rights.

¶ 03 Some say this Amendment privatizes CEB or opens more space to the private sector. Either through ignorance or deliberate misrepresentation, they paint a picture. What are we doing? It is clearly stated: we are creating five companies 100% owned by the State. We may allow private investment into some subsidiaries—like SLPA’s SLPMCS with 40% SLPA and 60% private—yet SLPA is not privatized. Likewise, unbundling is not privatization, whether in one or two years.

¶ 04 We propose four companies for the core CEB functions: generation, transmission, distribution and system control. The National System Operator (NSO) is the key; system control is 100% State and closed to private investment. For generation, private participation already exists and about 80% of the tariff goes to generation cost; if we optimize this, tariffs can be reduced. Renewables are a business—ROI matters, not arbitrary Rs. 37, 27, or 19 per kWh figures. We will not strangulate solar; but going forward GENCO will purchase for NSO strictly via PPAs, ending off-tariff purchases.

¶ 05 For transmission, the National Transmission Network Service Provider (NTNSP) remains 100% State. The network is about 5% of sector value, but large investment is needed. We will not build parallel grids. The grid remains unitary, but with extensions. Therefore, we introduce additional transmission licensing to open investments for grid extensions while the core NTNSP grid remains 100% State.

¶ 06 For distribution, today supply is geographic and captive. We aim for a future where customers can choose their distributor akin to changing a phone SIM, based on service quality and price—this Act sets the first step.