Cabinet granted approval to a memorandum to achieve 100% electricity coverage throughout the country by 2011, an advance from the initial target of 2012.

This is in view of the commitment given in the “Mahinda Chintana” to attain targets for sustainable economic growth and to make Sri Lanka a power hub in the region.

This requires the readjustment of the electrification targets to reach the above pledges by 2011.

Cabinet granted approval to implement the rural electrification strategy, to procure materials required for projects and for the CEB to invite detailed technical and price proposals for the supply of materials required for projects.

Approval was also granted to authorize the treasury to appoint a TEC and a CAPC with a mandate to negotiate with the bidder if the situation warrants and to authorize the Director General of the External Resources Department to negotiate and finalize the terms and conditions of the credit facility required to be arranged by the successful material suppliers.

The approval of the cabinet was also received to exempt the payment of Value Added Tax under the Value Added Tax (amendment) Act No 14 of 2007 and to exempt from paying custom duty, excise duty, Cess, NBT and any other duty under the revenue protection order.