Precarious Financial State Of The Electricity Board

Media Info

The Ceylon Electricity Board (CEB) burdened with a mountain of loans totaling more than Rs. 200 billion was managing with the daily income of between Rs. 500 million and Rs. 600million, informed officials said. The daily electricity demand that was between 35 and 38 GWh has jumped to 44 to 45 GWh due to dry weather countrywide. “We have to cover up a deficit of 300MW,” a senior Electrical Engineer said.

When it came to fuel requirements at power plants, they had sufficient stocks for two to three days. In case CPC stopped fuel supply, “We are in trouble,” an official said. When contacted, Spokesman for the Ministry of Power and Renewable Energy Sulakshana Jayawardena said that the Board had to do number of things with its daily revenue. Responding to queries, he said that paying Independent Power Producers (IPPs) topped the list as they had to pay to the Ceylon Petroleum Corporation (CPC). The Earthlanka learns that CEB had asked for five billion rupees from the Bank of Ceylon. However, the Bank has yet not decided to grant it as the Board already owed both the People’s Bank and the Bank of Ceylon Rs. 90 billion.

Meanwhile, CPC has informed Power and Energy Minister Mahinda Amaraweera that Government institutions and others owed the CPC Rs. 154 billion in outstanding loans as at December 2019. A document forwarded by the CPC to the Minister, points out that the CEB owes most to the CPC, with Rs. 86 billion in unsettled loans, which was Rs. Six billion above the credit limit. CPC also said that SriLankan Airlines owed it Rs 48 billion. Sri Lanka Railways, Sri Lanka Transport Board (SLTB) and the Road Development Authority (RDA) owed the Corporation a combined amount of Rs 49 billion.

Independent Power Producers (IPPs) owe Rs 10 billion, while the Three Armed Forces owed Rs 1.5 billion to the CPC, the report adds.

Previously, the Ceylon Petroleum Corporation had informed the Ceylon Electricity Board several times that fuel would not be provided to them if the outstandings were not repaid.