Govt. probes mounting CEB losses

The government has decided to look into how best mounting losses at the Ceylon Electricity Board (CEB) owing to the use of wrong fuel for power generation as well as other reasons, could be arrested.

Yesterday a top level meeting chaired by Minister of Power and Energy John Seneviratne was held involving Investment Promotion Minister Dr. Sarath Amunugama, relevant Secretaries and Central Bank Governor Nivard Cabraal.

CEB is estimated to lose Rs. 15 billion this year due to heavy reliance on high cost fuel power plants. Sources said that next year its losses will be over Rs. 20 billion with the planned commissioning of the 300 MW furnace fuel plant at Kerawalaptiya. The staggering losses as well as plants on stream as well those proposed were discussed at yesterday’s meeting.

The Bottom Line learns that the urgent discussion follows President Mahinda Rajapaksa instructing the Power and Energy Minister to take immediate steps to arrest financial losses at the CEB as well review generation plans so as to avoid a serious crisis in public finances.