Giving Up

Bowing down to trade unions, the government has said it will not ratify a Cabinet paper to restructure the loss making Ceylon Electricity Board, and will re-draw the reform plan. Bowing down to trade unions, the government has said it will not ratify a Cabinet paper to restructure the loss making Ceylon Electricity Board, and will re-draw the reform plan.

In a letter to striking CEB unions, signed by Finance Minister Sarath Amunugama and Energy Minister Susil Premajayantha, the government says it will come up with a new reform model.

The government has also said that it will not ratify the Cabinet paper on reforms that was passed last Wednesday, at its next meeting, causing the motion to lapse.

Trade unions called off their strike on Saturday and threats of pulling base load thermal plants off the national grid to cause blackouts, following crisis talks called by Premier Mahinda Rajapakse and the government’s written assurance.

The government will model its new restructuring plan on a state owned holding company and CEB subsidiaries for generation, distribution and transmission, the letter to unions said.

It also promises to draw up a new Electricity Act