ECONOMYNEXT – A net profit of 93 billion rupees made by Sri Lanka’s state power utility the Ceylon Electricity Board was used to settle outstanding debt, the Minister of Power and Energy said.
“The net profit of Rs 93 Billion by June 2024 has been utilized to pay the outstanding amounts to Renewable energy developers, Thermal power plants, Coal Procurement, Local suppliers, Dues to major projects, Roof top solar & Short term banking facilities,” Kanchana Wijesekera said on X (twitter).
The electricity consumer tariffs has been revised and reduced considering the other profits after settlement of payments, Wijesekera said in post titled ‘CEB Profits and Balances clarification’.
CEB reported a profit of 34.5 billion rupees for the three months ended on June 30, a 67 percent jump compared to 20.7 billion rupees in the same quarter in 2023 despite a fall in the revenue, interim accounts showed.
The profits came from lower financial expenses and falling costs even as a tariff reduction, reduced revenues.
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Sri Lanka’s CEB reports Rs34 bn profit for June 2024 quarter
Sri Lanka CEB can cut capex to find cash to pay generators if needed: Fitch
The CEB can cut capital expenditure to make payments to power producer if required, after the regulator mandated a bigger price cut than was proposed, Fitch Ratings said in its review last month.
Deviating from the current cost-reflective tariff structure is a key risk to CEB’s balance sheet and the long-term health of Sri Lanka’s power generation sector, the rating agency said. (Colombo/Aug21/2024)