The total outstanding bank borrowings obtained by the Ceylon Electricity Board (CEB) from State banks as of 31 December 2024 stood at over Rs. 11 billion, with the corresponding bank balances recorded as at 28 February 2026, Energy Minister Anura Karunathilaka said.

Responding to a query by SJB Opposition Parliamentarian Rohana Bandara in Parliament yesterday (5), he confirmed that the CEB had taken Bank loans from several State-owned banks. Outlining steps being taken to reduce reliance on Bank borrowings, he said that the Government is working towards ensuring a cost-reflective electricity tariff mechanism. He noted that two key approaches are being pursued to support this effort: reducing the cost of power generation and cutting down operational expenses. “Our aim is to move towards a system where tariffs cover costs. At the same time, we are focusing on lowering generation costs and minimising operational expenditure.”  

The remarks come in the context of the recent restructuring of the electricity sector, under which the CEB was dissolved and replaced by six new entities responsible for generation, transmission, distribution, and system operations. The six Companies — Lanka Electricity Generation Lanka (Private) Limited, National Transmission Network Service Provider (Pvt.) Ltd., National System Operator (Pvt.) Ltd., Electricity Distribution Lanka (Pvt.) Ltd., Employees Fund (Pvt.) Ltd., and Energy Ventures Lanka (Pvt.) Ltd. — officially came into effect following the repeal of the CEB Act, No. 17 of 1969 and the legal dissolution of the Board. One of the key objectives of this restructuring process was to improve the financial position and overall sustainability of the electricity sector.