Hon. Ajith P. Perera

¶ 01 Hon. Chairman, I move that in the Committee Stage of the Appropriation Bill, 2026, taken up today, Thursday, 20.11.2025, all recurrent and capital expenditure under each Programme of Head 119 pertaining to the Ministry under debate be reduced by Rs. 10 as per tradition.

¶ 02 Hon. Chairman, first I must comment on an issue raised at the start of today’s sitting. Our friend, Minister (Dr.) Nalinda Jayatissa, was scolded by Ranil Wickremesinghe today. Previously, who threatened by name and exerted pressure within this House against media persons engaged in responsible journalism—Chathura Alwis and Chamuditha Samarawickrama? That was Ranil Wickremesinghe’s way. At that time, Minister Nalinda Jayatissa, who logically explained in this House that Ranil Wickremesinghe was wrong, has now, after becoming a Minister, taken a position where he now criticizes the practice of using leading newspapers to inform the public. That is a big change, our Minister Nalinda. Your lovely smile tells me how helpless you become after taking office. If Ranil Wickremesinghe scolds Bimal Rathnayake, it is fine; but if he scolds Nalinda Jayatissa, that is the biggest problem.

¶ 03 Hon. Chairman, I will now speak on today’s subject. Hon. Minister, over the past year the most significant policy change relating to electricity occurred. The previous Government and the present Government are both keen on restructuring the Ceylon Electricity Board (CEB), and are continuing that policy. As the Opposition, we give our full support to the restructuring of the CEB. Do not doubt that. Generation, transmission, distribution and system operation can be done; and there can be necessary subsidiaries. We value dividing an unwieldy, hard-to-manage enterprise into manageable structures, managing them properly, and ultimately delivering quality electricity continuously at a fair price to households and industries while contributing to economic growth. We wholeheartedly support this restructuring programme and will continue to do so. What is important is that those who opposed restructuring two decades ago are now willing to undertake it. The world and opinions change. In Opposition one may oppose, but in Government with responsibility, one realizes what is right. Therefore the Government’s adoption of this policy is important.

¶ 04 What remains? A key expectation of restructuring is to bring in domestic and foreign private investment into these areas. A recent amendment by Government prevents bringing in such investments, keeping 100 per cent ownership with the State. While State control and employee protection are acceptable, if we do not bring State or private, local or foreign investment into generation, transmission, system operation and related fields, we cannot transform our system into a smart grid. The President, as Finance Minister, stated in his Budget that we must make our system a smart system. Correct. We all accept that. But the billions of dollars—about USD 8 to 10 billion—required cannot be obtained by the State alone. Thus inevitably there must be future legal reform, once the current contentious context settles and understanding among workers and consumers is built, to move to further progressive reforms. I wish you well; we will be there too.

¶ 05 A main current problem is the absence of a professional team to manage this restructuring. A small team under an individual is working. Existing CEB staff cannot be fully deployed as they are being allocated to separate entities with specific responsibilities. Therefore, an experienced professional firm with restructuring expertise must be engaged. Previously, PricewaterhouseCoopers (PwC), an internationally recognized audit and advisory firm, was engaged to some extent. Not fully—but now PwC has been pushed out by this discourse. PwC has global restructuring experience. I am not saying it must be PwC; it could be KPMG, EY, or another experienced firm. Through a proper process bring in a seasoned team to manage restructuring so we can execute it clearly. Our electricity system is worth billions of dollars—one of our country’s most valuable assets after the road network. We have achieved 100 per cent household electrification and good quality supply with relatively strong transmission and distribution compared internationally. Therefore, we must carry forward this system, reduce tariffs, and ensure quality supply. Assign the restructuring management to an experienced institution. This is not a job for one or two individuals acting on whims. Restructuring is a professional task—obtain a global institution with professional experience. The expenditure is not a loss; it benefits the country through investment.

¶ 06 On solar, through the “Soorya Bala Sangramaya” the solar sector grew. Today around 2,000 MW of solar is in the system. In September 2016 we launched Net Plus, Net Metering and Net Accounting; later Net Plus Plus, which is no longer in force due to fairness concerns—some captured grid capacity, depriving ordinary citizens. That criticism has merit. Yet many with capital could contribute; we thank all who pioneered. We wish the Government courage to carry the policy forward.

¶ 07 Despite ~2,000 MW solar, on holidays and with reduced demand during the economic crisis, curtailment occurs at times; investors are discouraged when PPAs become non-bankable. Thus we must pursue pumped storage. The priority now is the 600 MW pumped storage project at Aranayake (Mah Oya). Independent experts say it is very costly—new large reservoirs, environmental damage, and new transmission lines, costing over a billion dollars and high environmental cost. Instead, consider pumped storage using existing reservoirs. Between Victoria and Randenigala there is about a 190 m head suitable for pumped storage, with existing transmission and minimal environmental issues. Floating solar can be deployed with low cost today. Please prioritize the Victoria–Randenigala or Victoria–Wewa Thanna options identified in JICA studies (2009 feasibility, and again in 2018 when I held renewable portfolio). These minimize environmental impact, use existing grid, and save billions of dollars. Some may prefer high-cost projects, but we cannot knowingly do that. Let us discuss and support this solution to stabilize the system. Batteries also help; let us mobilize middle-class capacity and pursue both pumped storage and batteries.

¶ 08 On Sapugaskanda Refinery: commissioned in 1969, it is now in poor condition after 50+ years. We failed to resolve it. Meanwhile Sinopec’s USD 3.7 billion investment is touted. The MoU has 20% domestic and 80% export product split. Sinopec seeks a larger domestic share, which could destabilize domestic fuel security. The agreement is important but must proceed in a way that secures national energy security, resolving issues of water and land for the project.

¶ 09 On India–Sri Lanka arrangements: hidden agreements exist; though not presented to Parliament, we have them. Trincomalee Energy Hub should be developed on a win-win basis with India—our closest partner—alongside other partners like the UAE. Do not proceed in secrecy. Advance Trincomalee’s development.

¶ 10 Hon. Chairman, your time is over.

¶ 11 I conclude, and request five additional minutes from Hon. Gayantha Karunathilleka.