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Sri Lanka’s power utility in profits, cashflow positive: minister

Mar 10, 2011 (LBO) - Sri Lanka's Ceylon Electricity Board, the island's state-run power utility ended 2010 in profits and is also cash positive being able to settle is payments on time, power minister Patali Ranawaka said. The CEB had sold 121.86 billion rupees of power including 2.6 billion rupees worth energy for street lighting which has to be paid by the Treasury. With other income it had total revenues of 125.
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4 billion rupees.

It had expenses of 120.4 billion rupees generating a profit of 5,063 million for the year. The state utility does not have to make a provision for income taxes, unlike enterprises run by ordinary citizens.

Minister Ranawaka said the utility was now cash positive and it had cleared a bank overdraft and negotiated lower interest rates from state-run People's Bank.

CEB had tightened collections and cuts costs, reduced power piracy and also maximized hydro generation to produce stronger results, he said.

Hydro energy had risen to 47 percent in 2010 from 34 percent a year earlier and thermal generation had fallen to 47 percent from 60 percent.

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The utility had cut system losses to 13.39 percent in 2010 from 14.58 percent a year earlier. It had generated 10,695 million units of

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