The Ceylon Electricity Board warns that it is lurching towards serious power shortages in 2022 if it cannot secure dollars for the procurement of fuel for power plants in the country.
General Manager of the Ceylon Electricity Board M. R. Ranatunga speaking exclusively to News 1st said the CEB does not have an issue with regard to fuel stock until 24th January.
However, he said that if the CEB cannot source the funds to make payments to the Ceylon Petroleum Corporation, it will face a serious issue in power generation.
Over the past few weeks, the CEB has also been battling with several breakdowns that have impacted the prevailing power supply.
So far, it was the Ceylon Petroleum Corporation that stepped in for the Ceylon Electricity Board to import fuel and open the Letters of Credit.
However, the CPC has made it clear to the CEB that it cannot provide fuel on credit any further.
Chairman of the Ceylon Petroleum Corporation Sumith Wijesinghe told News 1st that the CEB is expected to pay Rs. 91 Billion to the CPC within two years.
He said that when crude oil prices slumped in the global market earlier, the funds that were saved were given to the CEB by the Treasury and Rs. 50 Billion was used by them to may payments, however, the debt burden has increased since then.
He noted that if the CPC is to issue fuel on credit to the CEB, the CPC must be in a position to obtain loans, however, given the present situation, it is impossible.