August 18, Colombo (LNW): The Ceylon Electricity Board (CEB) has posted a profit of Rs. 5.31 billion for the quarter ending 30 June 2025, marking a notable financial rebound from the previous quarter’s loss of Rs. 18.47 billion.
This turnaround follows the implementation of revised electricity tariffs in June, a move that analysts say was crucial in pulling the state utility back into profitability. The adjustment came after months of mounting financial strain, exacerbated by a tariff cut introduced in January 2025 shortly after the new government came to power.
That reduction—estimated at around 20 per cent—was widely popular among consumers but led to a substantial revenue shortfall in the first quarter of the year. Despite the improvement, the latest figures still represent a steep year-on-year decline. In the corresponding quarter of 2024, the CEB recorded a profit of Rs. 34.53 billion, making this year’s figure an 85 per cent drop.
The contrast underscores the delicate balance the utility faces between financial sustainability and political pressure to maintain affordable electricity prices.The International Monetary Fund (IMF), which has been working closely with Sri Lanka under its Extended Fund Facility programme, had explicitly called for the reintroduction of cost-reflective electricity pricing as a condition for the release of further financial support.
The tariff revision in June was seen as a direct response to this requirement.While the latest quarterly result signals a return to operational viability, energy sector analysts caution that the CEB’s long-term fiscal health remains uncertain.
Factors such as global energy price volatility, hydropower dependency, and political resistance to regular pricing adjustments continue to pose challenges.The CEB, once a consistent loss-maker burdened by debt and inefficient pricing structures, has made efforts in recent years to reform its operations and improve transparency.
However, as these latest results suggest, profitability can still fluctuate significantly depending on regulatory decisions and external fiscal pressures.
Further reforms—both in terms of pricing mechanisms and operational efficiency—are likely to be necessary to ensure the CEB remains financially stable while meeting the country’s growing energy demands.
