CEB Contradicts Minister's Claims on Profits and Losses, Reveals Surplus for 2024

In a surprising turn of events, the Ceylon Electricity Board (CEB) has contradicted recent statements by Energy Minister Kumara Jayakody, who claimed that the board is operating at a loss despite earlier remarks about its profitability.

Before coming to power, the National People's Power (NPP), led by Anura Kumara Dissanayake, promised to reduce electricity bills by one-third. At a rally in Mount Lavinia in August 2024, Dissanayake outlined a plan to reduce electricity tariffs by eliminating theft, reviving LNG-powered plants, and prioritizing renewable energy sources. This was followed by further commitments to lower bills by over 30% within 18 months. These statements were reiterated by President Dissanayake, raising public expectations.

However, recent revelations from the CEB’s financial records have raised eyebrows. In the first half of 2024, the CEB reported a profit of Rs. 119.2 billion, a stark contrast to a loss of Rs. 13.7 billion in the same period the previous year. This profit surge was primarily attributed to the high electricity tariffs imposed on the public, raising questions about previous forecasts of potential losses that justified tariff hikes.

The Public Utilities Commission of Sri Lanka (PUCSL) had already approved substantial tariff reductions in 2024, following reviews of the data. In the first quarter of the year, a reduction of 21.93% was authorized, followed by a 22.49% reduction in the third quarter. These adjustments defied the CEB’s initial proposals for more modest cuts.

An audit further revealed that the CEB’s trade payables as of December 31, 2023, were covered by tariff revisions made in 2023, with debt repayments due in 2024 totaling Rs. 63.9 billion. This indicates that the CEB is in a position to manage its financial obligations without burdening consumers further.

Despite this, Minister Jayakody recently stated that the CEB is facing financial challenges, even suggesting the possibility of an increase in electricity tariffs. His claims about no profits and only costs were directly contradicted by the CEB’s 2024 profit report, which showed a post-tax profit of Rs. 144.39 million for the year, and a group profit after tax of Rs. 154.41 million.

The CEB’s unexpected surplus has raised questions about the accuracy of government statements and the board’s financial health. As the situation unfolds, it seems clear that the discrepancies between public declarations and the CEB’s financial reports will continue to fuel debate on electricity pricing in Sri Lanka.