Restructuring CEB will reduce electricity production cost by Rs 2.50, says Finance Minister

Restructuring the Ceylon Electricity Board (CEB) will reduce cost of electricity production by Rs 2.50, says Finance Minister. Restructuring the Ceylon Electricity Board (CEB) will reduce cost of electricity production by Rs 2.50, says Finance Minister. “Last week we were looking at performance reports of the CEB. If we restructure the CEB we will be able to reduce a unit cost of electricity by Rs 2.50,” said Finance Minister, Sarath Amunugama.

Amunugama was speaking at the sustainability reporting awards ceremony by the Association of Certified Chartered Accountants on Wednesday.

CEB reforms – that includes debt restructuring – was to make the utility more financially viable.

However, at this point reforms to the CEB are stuck again because of trade union objections and the CEB is stuck with an over Rs 80 bn debt.

The plan was to get the CEB accounts out of the red by removing capital and loan interest payment from its books.

The utilities interest payments are around Rs 7 bn a year, and adds one rupee to the cost of a unit of electricity.

“If the debt is taken away and the interest, that one r