• Says new Electricity (Amendment) Bill will resolve overlapping roles between CEB and LTL Holdings  

In the wake of criticism over him holding top positions in multiple power-related entities such as the Ceylon Electricity Board (CEB) and the Lanka Transformers Private Limited (LTL), the Secretary to the Ministry of Energy, Prof. Udayanga Hemapala said that there is no conflict between the CEB and the ministry, and that steps have already been taken to resolve the issue of overlapping roles between the CEB and the LTL Holdings.

Speaking to The Daily Morning, the Electricity Consumers' Association General Secretary, Sanjeewa Dhammika, claimed that Prof. Hemapala, who is currently the Acting Chairperson of both the CEB and the LTL Holdings, is in a position where he signs off on decisions across all three roles. “He takes a decision as the CEB Chairperson, then goes to the Ministry and signs it as the Secretary, and then submits it to the Cabinet of Ministers. At the same time, he also signs off as the LTL Chairperson on transactions involving the CEB. How can that be right?” Dhammika pointed out.

He said that this clearly amounts to a conflict of interest, as the same individual is making decisions, approving them, and overseeing implementation, all across institutions that are supposed to operate separately. "It's the ministry that should provide policy directions to the CEB and the LTL Holdings. When all institutions are headed by one person, we can't assure that proper policy directions are provided," opined Dhammika.

When queried by The Daily Morning regarding the allegation, Prof. Hemapala said that the Ministry is not engaged in businesses with the CEB, and that it only provides policy direction, which the CEB implements. “There’s no clash between the ministry and the CEB. The ministry gives the policy directives, and the CEB carries them out. The position of the CEB Chairperson is not an executive one. All decisions are made by the Board, not the Chairperson. So, being both the Ministry Secretary and the CEB Chairperson doesn’t create any conflict of interest," claimed Prof. Hemapala.

However, he said that being Chairpersons of both the CEB and the LTL Holdings amounts to a conflict of interest, as the CEB is making purchases from the LTL Holdings. "I agree that there’s a conflict between the CEB and the LTL, because the CEB purchases transformers and other equipment from the LTL. But, that structure has existed for years and can’t be changed overnight. We have identified it, and the Sri Lanka Electricity (Amendment) Bill which has been submitted to the Parliament includes a clause saying that one person cannot sit on the boards of two related companies. When that's in effect, the CEB Chairperson won't be the ex-officio Chairperson of the LTL Holdings,” he pointed out.