News
Raise electricity tariffs: CEB FM
The Ceylon Electricity Board’s (CEB) Finance Manager has requested its General Manager for an immediate increase in electricity tariffs.
Finance Manager Tissa Liyanage on Thursday wrote to Acting General Manager D C R Abeysekera proposing a string of measures to overcome an internal financial crisis. He has suggested Treasury intervention to arrange financing facilities from institutions including People’s Bank, where the CEB account is maintained.
The utility is now Rs 17bn above its People’s Bank overdraft limit of Rs 12bn. The total owed is Rs 29bn. Therefore, the bank has refused to enhance the revolving credit facility for coal importation from Rs 15bn to Rs 20bn, or to increase the overdraft facility by Rs 5bn to commit to the value of the coal shipment.
On March 24, People’s Bank informed the CEB that it cannot honour any payment until it recovers the excess amount of Rs 17bn through daily collections. As a result, the payment of March salaries was held up on Wednesday, only being settled with the “greatest difficulty,” Mr Liyanage writes.
“The revolving facility for coal import also has been fully exhausted by leaving around Rs 23bn unpaid for coal shipment. Another payment of coal is due on March 30, 2022, amounting to Rs 10.5bn,” he states.
The Ceylon Petroleum Corporation (CPC), too, has instructed CEB that unless its debts for the past few months is settled, no fuel will be supplied. This was why the utility obtained Rs 25bn from People’s Bank and Rs 15bn from the Treasury. Since no bidders came forward in response to tenders, coal was bought within a short time at an exorbitant price.
The CEB will be forced to operate “within a concentrated financial corridor” until People’s Bank recovers the excess OD. The utility also needs to make arrangements to settle the balance coal payment amounting to Rs 33.5bn this month and meet bills of independent power producers and non-conventional renewable energy suppliers which are around Rs 44bn and Rs 24bn respectively. Mr Liyanage has asked that customer receivables be fast-tracked.
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!