1 June 2023 11:02 am
The efforts to restructure the balance sheet of the state-run utility Ceylon Electricity Board (CEB) is continuing with the technical support of the World Bank, Power and Energy Minister Kanchana Wijesekera said.
As per the commitments made under the International Monetary Fund (IMF) programme, Sri Lanka is expected to come up with a plan to restructure the balance sheet of the CEB by the end of June 2023.
“… the World Bank experts will work with the CEB and IMF to provide advice and options available to restructure the existing project loans, payments due to CPC, renewable developers, IPPs and other suppliers, working capital loans obtained from state banks, other loans obtained, recovery of losses for 2023 and the business plans of the CEB,” Wijesekera tweeted.
“With the options made available, the ministry will submit the strategy to restructure the balance sheets of the CEB to the Cabinet of Ministers for approval,” he added.
Despite the sharp upward revisions in electricity tariffs, the financial performance of the CEB remains dismal.
The CEB at group level recorded a net loss of Rs.35.5 billion in the March 2023 quarter, compared to Rs.21.5 billion a year ago. This was despite its revenue surging 71 percent year-on-year to Rs.135.8 billion. Heavy cost of sales and interest expenses erased the gains made at the top line.
As at March 31, 2023, the CEB had accumulated losses of Rs.546.7 billion. It also had Rs.215.7 billion as interest-bearing loans, under non-current liabilities and Rs.127.8 billion as interest-bearing loans, under current liabilities.