CEB No More in Debt in 2010 Financial Year

Addressing the Media briefing announcing the CEB 2010 Financial progress yesterday, Minister of Power and Energy Patali Champika Ranawaka stated that after 10 years the CEB has been able to show a Rs. 5 billion profit. Emphasizing that Avoiding the Rs. 40 billion debt which the CEB anticipated from the beginning of 2010, it was possible to avoid taxing the people the additional Rs. 2000 irrespective of social status. Thus it is considered a victory for the people more than an achievement for the CEB.

Furthermore He stated that whatever purchases the CEB had made in the 2010 financial year, subsequent to all dues settled in full the CEB was able to record a profit of Rs. 5 billion. Hence for the first time in history, during the year 2010 the CEB has been able to settle all dues payable to the Petroleum Corporation within the year.

Several media organizations were of the opinion that the Petroleum Corporation was incurring losses due to the payments due by the CEB. They expressed that due to the CEB purchasing Heavy Fuel at Rs. 4o per liter from the Petroleum Corporation where the actual cost is Rs. 81, resulting in a 50% loss for the Petroleum Corporation. But the CEB has up to the 31st of August 2010 purchased Heavy Fuel from the Petroleum Corporation for a mere Rs. 26. Upon the request of the Petroleum Corporation discussions were held and the amount was increased to Rs. 40 per liter. This decision was reached with the intervention of the Ministry of Finance. Furthermore the purchase of Diesel will be carried out according to the normal market rate; NAPTA purchases it for Rs. 42.

In the production process of Petroleum, Heavy Fuel remains as a residual product after the purification process of Diesel and Petrol. It is 38% of the entire process. The remnant Heavy Fuel percentage is far greater than all petroleum products. As a solution to this the CEB has set up thermal power stations such as Sapugaskanda. A major factor was that the Petroleum Corporation agreed to supply the Heavy Fuel which the Petroleum Corporation had no use for, free of Charge to the CEB. Therefore it is obvious that the Petroleum Corporation is not incurring losses due to the supply of Heavy Fuel free of charge, but rather due to long standing problems in the purification process.

Prior to 2009.12.31 the dues owed which was Rs. 52 billion to the Petroleum Corporation by the CEB, the Treasury covered the cost without burdening both the CEB and the Petroleum Corporation.

Accordingly I further reiterate that according to the Financial Progress report published by us yesterday (2011.03.10), the CEB has recorded a Rs. 05 billion for the financial year 2010.

There are certain unscrupulous elements spreading false rumors with the sole intention of defaming and disrupting the Government and ministers. I therefore urge you all as responsible media organizations to act with responsibility and verify any issue with relevant ministers or officials prior to publishing them.