Jan 24, Colombo: The Power and Energy Ministry states that the state owned Ceylon Electricity Board (CEB) will not be privatized.

Power and Energy Minister Patali Champika Ranawaka has stated that there was no truth to statements that the government was planning on privatizing the CEB.

He has noted that the agreement signed by the government in office in 2002 to divide the CEB into six sectors is still valid and that the government's goal now is to develop the CEB into a state entity that is not a burden to the people.

According to Ranawaka, the Power and Energy Ministry has drawn a plan that includes an energy conservation programme that helps to save power and minimize the losses incurred by the CEB.

According to the Central Bank the CEB sustained a loss of 25.5 billion rupees in 2011 and loss of Rs. 45-50 billion is estimated for 2012 due to the increase in thermal power generation when the prolonged drought reduced hydropower generation.

The Minister has observed that the CEB will also not be allowed to decide on electricity tariffs.