CEB a profit making venture in five years - Minister

Irangika RANGE, Sandasena Marasinghe and Disna MUDALIGE

Power and Energy Minister Patali Champika Ranawaka said in Parliament yesterday that the Ceylon Electricity Board (CEB) will be converted into an Institution without any operational loss within the next five years.

Plans are being implemented to avoid petroleum based power generation. Once power supplies from the new power plants at Norochcholai, Upper Kotmale and Kerawalapitiya are integrated to the national grid of the CEB which recorded losses amounting to billions of rupees, would be a profit earning venture, the Minister said.

"Although electricity was generated by using hydro-power before 1995, we had to go for a petroleum based power generation to meet the additional high public demand after 1995," Ranawaka said.

"With the implementation of these long-term strategies, the CEB will be able to avoid further losses," he said.

Minister Ranawaka said the CEB had incurred a Rs. 11,210 million loss in 2009.

CEB's total debt was Rs. 176 billion last year.

He said the total debt of Rs. 176 billion comprised of short-term loans amounting to Rs. 12 billion, long-term loans amounting to Rs. 89 billion and other debts of Rs. 74 billion last year. The Minister was replying a question raised by UNP MP Ravi Karunanayake.

The long-term loans from Lending Agencies are provided to the Government and Treasury relends to CEB on supplementary loan agreements. The CEB pays loan instalments and interest to the Treasury as per the supplementary loan agreements. The payment of loan instalments and interest on long-term loans to the Treasury by the CEB was not made since 2006 based on the agreement with the Treasury and the repayment would commence, once the Norochcholai Coal Power Plant is commissioned.