Power and Energy Minister of Sri Lanka Champika Ranawaka says the losses incurred by the main energy supplier of the country, Ceylon Electricity Board (CEB) estimated at Rs. 29 billion at the beginning of the year are likely to increase due to the current financial crisis at the institution.
The CEB is currently facing a severe financial crisis due to the increase in thermal power generation brought about by the decline in hydropower generation due to lack of rains.
Ranawaka said the CEB operated without any subsidies from the government and would therefore have to operate by increasing its bank overdrafts.
He said that the CEB has however managed to reduce costs and losses in some areas through efficient management, but has incurred massive losses in the power generation process.
According to Ranawaka, the Public Utilities Commission that regulates electricity tariffs has been informed of the CEB's financial situation.
He said the options to address the situation was to revise electricity tariffs or for the Treasury to subsidize the energy sector or to shed power.
CP
