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Government will lose US$ 100 million in donor funding if overdue CEB reforms are not done by the end the month. The Japan Bank for International Cooperation (JBIC) and the Asian Development Bank have said two program loans worth around US$ 100 million in total linked to power sector reforms, would expire by this date.
Heavily indebted CEB is now under pressure to convince unions that splitting or unbundling the company soon is the only option.
The State power monopoly owes Rs.
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27 billion to banks due to selling power below cost.
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Trade Unions fear the independent companies will be privatized after restructuring.
A US$ 71 million loan from JBIC and a US$ 30 million loan from ADB will expire end March.
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Finance Ministry is pressurizing the CEB management to win over unions after the President gave unions a Monday deadline to propose changes to the current restructuring model.
Finance Ministry officials also met donor representatives and other CEB management in Colombo on Thurs