Minister of Energy Kumara Jayakody has warned that the prolonged dry weather conditions affecting the country could lead to an increase in electricity tariffs.
His statement came during a recent meeting in Matale, where he addressed concerns over the rising costs of energy generation.
Minister Jayakody emphasized that while the Ceylon Electricity Board (CEB) had reduced rates by 20% recently, the continuation of dry weather conditions could force the government to raise rates again.
He explained that the reduction was not made from any profits but as a result of careful adjustments, with the aim of managing the financial strain on the energy sector.
“We had to reduce electricity prices by 20%. If the dry conditions persist, there is a high chance that we may have to increase rates again. We are not running the electricity board for profit or surplus; it is for sustainability. We do not want to make further adjustments if possible,” Minister Jayakody noted.
He also criticized claims that the CEB was earning substantial profits, referring to reports that it had generated a profit of Rs. 140 billion in previous years.
He clarified that these profits were not real profits but reflected funds leftover after covering operational expenses.
“The so-called profits you hear about are not actual profits; they are simply the remaining funds after adjustments in electricity prices every quarter. If the dry weather continues, we may face further challenges in the coming months. While the board had reported a surplus in the previous year, these funds were used to cover rising costs, and by the end of this year, we may face a deficit,” Jayakody added.
He further warned that if the situation worsens, the country could be facing even higher losses, especially if the drought continues into the next few months.
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