Tough time ahead with electricity and fuel price hikes: Ranil

• Losses of CEB in 2021 was Rs.79Bn

 By Yohan Perera   

 Sri Lanka’s economy is heading for a tough time in the  coming months with power tariff and fuel price hikes as a result of  increasing losses of the Ceylon Electricity Board (CEB) and Ceylon  Petroleum Corporation (CPC), former Prime Minister Ranil Wickremesinghe  said yesterday.    

 “According to the Minister’s speech in Parliament last  week, the losses of CEB in 2021 was Rs 79 billion. Some say the losses  are higher, projected this year is Rs 100 billion. The tariff for one  unit is Rs 17, but the expenditure is Rs 5. The loss of CPC for 2021 was  Rs 83 billion. The daily loss of CPC is Rs 327 million.  CPC losses are expected to be $ 80 million in  a few months time. Losses incur further because of the rupee  devaluation.   
 “These two institutions are in debt to both People’s Bank  and Bank of Ceylon. These banks have to carry the burden of Srilankan Airlines as well. These two banks have been affected with the stoppage  of International Sovereign Bonds. In addition, NSB is also affected. The  total amount due to the state banks is Rupees one trillion.   

“Power tariff hike and fuel price hike to reduce the  losses. Are we going to untie the knot or cut it? It will take time. The  people in this country have to bear this burden till the mechanism of  borrowing is in place,” Mr. Wickremesinghe said.