CEB borrows Rs.15 bn to pay off CPC | Daily News


CEB borrows Rs.15 bn to pay off CPC

It is reliably learnt that the Ceylon Electricity Board (CEB) which had imposed sporadic power cuts to meet the operational costs as it has exceeded the amount owed to the Ceylon Petroelum Corporation (CPC) has borrowed Rs.15 billion from the Bank of Ceylon as the first installment of this debt payment.

Earlier this week, the CPC halted its supply of fuel to the CEB citing that the Board had exceeded the credit limit of Rs.80 million which was afforded to CEB. Minister of Power and Renewable Energy Ravi Karunanayake told the Daily News that the Treasury had not made payments to CPC for over a year. He added that the CPC had given two weeks grace period for the CEB to make payments.

“The CEB is in discussions to borrow Rs. 15 billion from the Bank of Ceylon to pay off the CPC,” an official from the Finance Department of the CEB said. “This will be the first payment to offset the Rs. 80 million. There should be uninterrupted supply of fuel after this.”

Officials from the Petroleum Resources Development Ministry said a decision was reached to re-supply fuel to the CEB until payments could be made within the next two weeks.

“The relevant authorities have been advised to allow for the re-supply to prevent islandwide power outages,” the official said.

“Thermal power plants consume more power and if fuel is not continuously supplied, the CEB will be forced to shut down some of these plants, which will result in power interruptions.”


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