The Hon. (Dr.) Harsha de Silva

¶ 01 Hon. Presiding Member, we tried for long to amend the original electricity law to reduce tariffs, give relief to consumers, cut industrial costs and make the economy competitive. We broadly supported the 2024 Act, though we opposed some parts—especially on consumer protection. Then-Minister Kanchana sought to create competition to increase efficiency and reduce costs—by creating competing State generation entities and enabling needed investments across generation, transmission and distribution, including private participation where appropriate.

¶ 02 The President Anura Kumara Dissanayake himself said they are ready to bring in private investment where necessary. Yet some here now say there will be no room at all.

¶ 03 Under the 2024 Act, Mahaweli hydros—built by the UNP—remained 100% State. That is unchanged. No one was going to sell reservoirs. But Norochcholai (West Coast), diesel and renewables allowed scope for partial local or foreign equity or IPOs to raise investment. That was not blanket privatization but enabling investment. In distribution, creating entities like LECO with high efficiency and awarding concessions to distribute—competing for the market at agreed service quality and lowest tariff—was the approach. This rollback destroys the core thrust of the 2024 Act.

¶ 04 That is why ADB, IFC of the World Bank Group, and JICA wrote to the Government—Hon. Minister of Energy Kumara Jayakody—saying “please do not do this.” I table that letter. They state these changes undermine the Act’s objectives and the ADB policy-based loan commitments, weakening Sri Lanka’s attractiveness to investors.

¶ 05 Additionally, the Ceylon Chamber of Commerce, sector experts and investors oppose these amendments. Yet all advice has been dumped, and this has become the “Pubudu Niroshan Amendment”; he even replies to these letters. I table that response too.

¶ 06 Through this, Parliament will push the sector backwards and hurt growth.

¶ 07 Two specifics. At the SOC, I asked the Secretary about Transco investments. Pubudu Niroshan answered: USD 5 billion over the next 8 years. Another Member said extensions can be licensed to private parties—implying USD 1 billion private and USD 4 billion public. In reality, ADB and World Bank were ready to provide about USD 200 million under the policy-based loan. Pubudu Niroshan said those do not matter; they will go to AIIB, because the IFIs have objected. Recently, at the Public Finance Committee, the Public Debt Management Office DG said CEB carries elevated risk; with guarantee fees the effective rate could be 4.8% over the Treasury, and with AIIB a floating SOFR around 6%—and total USD borrowing for CEB could be about 11% in dollars now. With USD 75 million annual revenue at Transco you cannot raise USD 4 billion—this is pie in the sky.

¶ 08 All this began to lower tariffs under a cost-reflective regime. If you create inefficient agencies and raise costs, that cost goes to consumers and industry. This is not a light-bringing Bill; it takes the country into darkness.

¶ 09 Thank you.