ECONOMYNEXT – Sri Lanka’s state-run Ceylon Electricity Board has lost 108 billion rupees in 2022 and 80 billion rupees has been injected to the firm by the Treasury, a Finance Ministry report said.
The CEB’s revenues had rise 4.6 percent to 172 billion rupees up to August 2022 from 164.5 billion rupees last year.
But generation cost had doubled from 104.7 billion rupees to 209.5 billion rupees.
In August the Public Utilities Commission of Sri Lanka which controls CEB’s tariffs allowed a hike after almost 7 years.
In 2022 Sri Lanka’s rupee collapsed from 200 to 360 to the US dollar in the worst currency crises in the history of the island’s Latin America style central bank.
Sri Lanka’s macro-economists using John Law/Keynesian style Mercantilism had depreciated the currency from 4.70 to the US dollar when the agency was first set up with errors in interest rate targeting compensated with depreciation.
Up to July 37 percent of the power came from coal and 28 percent from hydro.
Cost per unit at the selling point increased to 29.17 rupees per Kilo Watthour in the first eight months
of 2022 from 17.33 per KWh in 2021.
The Treasury had given 80 billion rupees to the CEB to repay Ceylon Petroleum Corporation up to August 2022.
But by end August the CEB owed the CPC and independent power producers 148.1 billion rupees
State banks were owned 168.1 billion rupees for overdraft.
Total loans including those taken for projects was 395.5 billion rupees at the end of August 2022. (Colombo/Nov21/2022)