By The Ceylon Electricity Board (CEB) has reported substantial profits for the fiscal year 2023, totaling Rs. 61.2 billion for the Board and Rs. 75.7 billion for the group, inclusive of other investments. This information is derived from the unaudited interim financial statements for the year ending December 31.
The impressive financial results were primarily influenced by a remarkable surge in profits from October to December of the previous year. Analysts attribute these earnings to the abundant rainfall experienced nationwide from September onward, enabling the CEB to significantly reduce its dependence on oil and coal-based energy generation.
Rain Fall
Typically, heightened rainfall occurs during October–December in an El Nino year. Meteorology Department data corroborate above-average rainfall during the specified period last year.
Examining the financial statements reveals that the October to December revenue includes an additional Rs. 21 billion resulting from the 18% tariff increase implemented in October 2023. This increase was deemed an “emergency measure” after the CEB cautioned about the possibility of closing the year with an Rs. 18 billion loss without it.
However, the financial statements also indicate that even without the tariff increase, the CEB would have amassed significant profits, approximately Rs. 40 billion, prompting concerns about the rationale behind the tariff hike.
During a public consultation held in October of the preceding year by the Public Utilities Commission of Sri Lanka (PUCSL), all stakeholders opposed the tariff increase, citing the overestimation of CEB’s projected costs for 2024. Despite this, the PUCSL approved the 18% tariff hike the following day without releasing its customary “decision document” to explain and justify the approved percentage revision.
Electricity Connections
Nearly 1 million electricity connections were disconnected within 2023, the Parliamentary Sectoral Oversight Committee on Alleviating the Impact of the Economic Crisis was informed.
Chairman of the Committee MP Gamini Waleboda said the facts were revealed during a meeting with several institutions, including the Public Utilities Commission of Sri Lanka
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