An audit report released by the National Audit Office has shed light on significant late interest payments made by the Ceylon Electricity Board (CEB) in 2022, totaling 15.47 billion rupees. These payments were incurred due to delays in settling dues for electricity and fuel purchases.
Of this staggering amount, 6.55 billion rupees were disbursed as late interest to energy producers for the purchase of electricity, while 8.92 billion rupees were paid to the Ceylon Petroleum Corporation (CPC) for fuel procurement. Additionally, the report highlights that 11.17 million rupees were expended as default interest for delayed loan installment payments to local banks.
In response to queries raised during the audit, the Ceylon Electricity Board cited liquidity challenges in meeting fuel and payment obligations. They further noted that the Treasury historically allocated a dedicated fund to cover these late interest payments. However, the management of the Electricity Board lamented that the Treasury had not acknowledged the outstanding dues owed to the Ceylon Petroleum Corporation.
