Cash-strapped Ceylon Electricity Board (CEB),is gain some relief following the Ceylon Petroleum Corporation (CPC) decision to rescue the CEB with an enhanced credit limit of up to a thumping Rs. 100 billion for fuel supplies to the Board’s thermal plants.
The enhanced credit package allowing CPC to restore regular fuel sales to CEB thermal power plants was formulated by Petroleum Corporation managers.
The debt-ridden CEB had sought a loan from the Bank of Ceylon for Rs.10 Billion to offset the payments owed to CPC.
Meanwhile, the CPC has also requested the Electricity Board to settle their payments on a monthly basis.
The Ceylon Electricity Board has decided to obtain this loan to settle the debts owed to the Ceylon Petroleum Corporation.
A spokesman for the Ministry of Power and Renewable Energy Sulakshana Jayawardena said the loan is expected to be obtained through a state bank.
The total amount to be paid to the CPC stands at a staggering of Rs 84billion.
Previously, the Ceylon Petroleum Corporation had informed the Ceylon Electricity Board several times that fuel would not be provided to them if the loan was not paid.
(LI)