Sri Lanka’s state-run Ceylon Electricity Board has made an operating loss of 3.0 billion rupees in the December 2024 quarter, and made a marginal net profit with the help of other income and gains, interim accounts showed.
CEB’s revenues plunged 28 percent to 111.8 billion rupees in the December 2024 quarter, from 156.2 billion rupees, while cost of sales grew 49 percent to 116.2 billion rupees, leading to gross loss of 4.49 billion rupees, down from 78 billion in 2023.
Sri Lanka got exceptional rains in 2023 in the inter-monsoon period, keeping costs down. Selling prices were also higher.
With the help of other income and gains of 11.3 billion rupees in the December quarter, the CEB covered some of its administration costs of 9.8 billion rupees with an operating loss of 3.0 billion rupees.
There was finance income of 3.6 billion rupees and it was not specified whether it was a foreign exchange gain.
For the full year the CEB had made 11.7 billion rupees of forex gains, as the rupee appreciated with deflationary policy.
In the year to December the CEB posted profits of 144 billion rupees, helped by forex gains and also a 26 billion rupee capital gain from sale of shares of LTL holding to West Coast Power reducing its debt.
Concerns have been raised at Sri Lanka’s electricity tariff policy and way forward looking pricing is not made.
In the first quarter of each year, there is a dry period, which leads to higher thermal generation though now there is rooftop solar helping reduce the fuel usage and allowing to manage with coal, which is cheaper.
The International Monetary Fund has said Sri Lanka missed a structural benchmark after the Public Utilities Commission cut fuel electricity tariffs by 20 percent in January.
Source – Economynext