The Minister for Power Champika Ranawaka is seeking approval from the Sri Lankan cabinet to raise the borrowing limit of the state owned Ceylon Electricity Board to Rs 74.2 billion, reported LBO.
He said the funds will be used to meet increasing fuel needs, settle debts and pay independent power producers.
Ranawake told cabinet members that CEB currently owed Rs 16 billion to independent power suppliers and another Rs 15 billion to the state owned Ceylon Petroleum Corporation, the Sunday Times reported.
Ranawaka said the CEB was in “severe financial crisis”, even though fuel surcharge between 15 and 40 percent was imposed in February to cut losses.
The minister said the reason for the financial crunch was the increase of cost of independent power producers and CEB fuel due to increase of fuel prices by the CPC and increase of thermal generation due to prevailing drought situation in the country.
He also blamed the crisis on the cutting of government subsidies and other funds.
Over 14,500 CEB employees are currently on strike demanding fair and unbiased treatment.
“Workers will be on strike until the Electricity Board increases their salary and promises to stop privatizing Electricity Board depots,” CEB trade union convenor Ranjan Jayalal told the Sunday Times.
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