Economics

CEB Utilizes Rs. 93 Billion Profit to Settle Power Project Debts: Minister Wijesekera

Power and Energy Minister Kanchana Wijesekera announced yesterday that the Ceylon Electricity Board (CEB) used its net profit of Rs. 93 billion, registered by June 2024, to settle various power project debts.

In a post on ‘X,’ Minister Wijesekera detailed that the net profit was utilized to pay outstanding amounts owed to renewable energy developers, thermal power plants, coal procurement, local suppliers, major projects, rooftop solar initiatives, and short-term banking facilities.

He also mentioned that electricity user tariffs have been revised and reduced, taking into account the profits remaining after these payments. The announcement follows reports that the CEB posted a net profit after taxes for the April-June quarter, with Rs. 34.53 billion paid in taxes. Previously, the CEB had reported a net profit of Rs. 84.67 billion after taxes for the January-March quarter, bringing the total profit for the first half of 2024 to Rs. 119.20 billion.

Responding to criticism about the use of profits to pay off debts, Minister Wijesekera questioned alternatives, asking, “How do you suggest that CEB pays its debts? With additional loans, taxes, printing money, or sale of assets? Or did you suggest deferring payments to renewable energy developers, independent power producers, suppliers, and banks?”