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CEB records Rs. 38.7 billion loss

The Ceylon Electricity Board (CEB) reported a financial loss of Rs. 38.7 billion for the year 2025, according to the Central Bank of Sri Lanka (CBSL). The Annual Economic Review 2025 highlights that elevated thermal power generation costs during dry weather conditions primarily drove these losses.

While electricity tariffs saw a reduction in 2024 and a further 20% cut in January 2025, an upward revision of 15% in June 2025 was insufficient to offset the high operational costs. The utility's financial strain was further reflected in its liabilities, as short-term borrowings climbed to Rs. 206.2 billion by the end of 2025.

The CBSL also noted that a new tariff revision, effective from April 1, 2026, aims to address the revenue shortfall. This latest adjustment includes an average increase of 10.3%, with domestic consumers seeing varying increases based on their monthly consumption tiers.

Source: Hiru news