CEB incurs massive loss of over Rs 44 bln in 3Q 2022

Sri Lanka’s state-run Ceylon Electricity Board (CEB) has incurred a massive loss of Rs. 44.31billion in the third quarter this year (from July to September) compared to a loss of Rs. 21.45 billion during the same period last year, due to high costs for fuel and coal along with operational expenditure, the latest CEB financial statement divulged.

In the first eight months of 2022, the CEB has suffered a loss of Rs. 108.6 billion and it anticipates a loss of Rs.108 billion rupees in the fourth quarter despite electricity tariff reforms that were implemented in August, Minister of Power and Energy Kanchana Wijesekera said.

Explaining the reasons for the long-running losses of the CEB, the minister noted that a delay in imposing cost-reflective pricing was the main reason for the utility provider to make losses.

He disclosed the CEB expects an additional income of Rs.15 billion following tariff revisions in August this year.

The limited foreign currency liquidity and resultant shortages of key inputs including heavy fuels and disruptions to the CPC refinery have constrained operations of the CEB resulting in power outages during the period under review creating significant economic and social challenges, the statement said. (Bandula)