The Ceylon Electricity Board (CEB) is facing a major financial crisis, official sources confirmed.

The annual loss of the Ceylon Electricity Board was between 80 and 85 billion rupees and by 2020 it was possible to reduce that loss to 45 billion rupees,A CEB official said adding that it is now aggravated to a crisis level with dwindling revenue.

He was addressing the Galle District Rural Infrastructure Committee under the National Program to Uplift the Rural Economy.

It costs Rs. 23.87 per unit to generate electricity in Sri Lanka. But a power unit is provided for Rs.16.60. Accordingly a loss of Rs. 07 per unit of electricity is incurred. The annual loss is around Rs. 16 billion,” he explained.

Especially for industrialists a unit of electricity generated at Rs. 23 is provided at a cost of Rs. 12.50.There are about 474,000 street lights in Sri Lanka. It will cost around Rs. 02 million. For 2.7 million low income families from 01 to 30 units are charged at Rs. 3.50

From 30 units electricity is charged at Rs. 5.50. As a result the CEB incurs a loss of Rs. 20 billion annually, he added.

A deepening financial crisis at Sri Lanka’s state-run Ceylon Electricity Board is forcing the utility turn on more expensive plants while cheaper plants which do not have cash to buy fuel is idle, informed sources said.

Under standard operating rules the CEB run thermal plants on a ‘merit order’ starting the cheapest plants first and the most expensive plants last, to supplement coal which is the main source of base load.

In general gas turbines are run last.The operating costs of a plant is based on the type of fuel (coal is cheapest) the type of plant, and in the case of a private plant the level of competition at the time it was acquired which will determine the price.

Some Independent Power Producers are cheaper than others partly because they are more efficient or they had bid lower at procurement due to competition and are offsetting energy costs with part of their capacity charge.

The CEB has now exceeded the 80 billion rupee credit limit given by the Ceylon Petroleum Corporation.

Ceylon Electricty Board (CEB) is facing severe financial crisis following the dried up of money in a certain state bank accounts resulting in the return of cheques recently, CEB informed sources said.

This bank has already halted the granting of over drafts to the CEB and the finance manager the of the bank has ordered the finace division not to issue cheques of the particular bank which has no sufficient funds in CEB accounts.

This state bank has already granted a loan facility of Rs. 28 billion surpassing the normal limit of Rs 12 of such loans.

A senior official of the CEB said that the management of the electricity utility is facing cash flow problem making it difficult to pay even April salary of employees

Capital TwinPeaks the mixed development project with twin towers with 475 luxury apartments and 40,000 sq. ft. of facilities and amenities for residents to live, work and play has been completed by by the Sanken Group.

Sanken Construction Managing Director Ranjith Gunatilleke stated: “This project has been completed at present with the value of materials and labour as per the last 3 or 4 years.

If you develop a similar project in the near future in the current economic situation the cost of the apartments will be at least 50 percent more than prices at Capitol TwinPeaks. And this is another key reason why Capitol TwinPeaks is a great investment opportunity today, he said.

The entrance level at the complex offers commercial services for all aspects of day-to-day living, while level 50 hosts an international standard of lounges and dining options.

All residents have access to a fully-serviced clubhouse on level 8, which offers a wide range of facilities and amenities including a function room with capacity for up to 250 guests.

Located in the central business district, TwinPeaks is neighboring leading hospitals and is in close proximity to schools, places of worship, dining options, entertainment, tourist attractions, malls, cinemas, the Galle Face Esplanade and Beira lake.

Colombo Port City, another key location that is expected to attract large foreign investment to Sri Lanka, is 2KM from TwinPeaks. The lifestyle experience at Capitol TwinPeaks is far beyond other projects in the area and the futuristic development concept positions it as one of the most lucrative investment options today.

Sanken, a homegrown giant in construction and property development, is responsible for the majority of high-rises in Sri Lanka. Maintaining operations for over 40 years in 09 countries and 3 continents, Sanken thrives on their experience and exposure.

Sanken’s credibility and successful track record continues to win the confidence of investors and while there are many one-time developments coming up today, the competition for Sanken is far and wide.

Apartment handover at Sanken’s flagship project Capitol TwinPeaks started in December 2021 and the Complex will be ready for occupation.

It is common knowledge that investing in property is a great way to beat rising inflation and the asset value appreciates over time. While construction costs and property prices have significantly gone up since the COVID 19 pandemic, the Sanken Group has done well to maintain costs and the last price adjustment for apartments at TwinPeaks was in December 2018.

This is a massive advantage for current investors as capital appreciation within the city limits has averaged at minimum 7% year-on-year. Many investors have identified the opportunity at Capitol TwinPeaks and the project has seen strong demand over the past 12 months.

Sri Lanka has been forced to sign four bilateral agreements unfavourable for the island nation with India soon compromising the country’s sovereignty as a state. This was transpired when perusing official documents, several political and foreign affairs analysts said.

The relevant Cabinet Memoranda and interim documents and annexures have clearly indicated that these bilateral agreements are detrimental for the country endangering Sri Lanka’s territory, people , and its sovereignty.

Some of these proposals needed to get Cabinet approval for Sri Lanka to secure the US$ 1 billion Indian loan.

This was after agreements were also signed for the Trincomalee oil tanks, a renewable energy project in Sampur and an energy project off Mannar previously. They also come on the eve of Indian External Affairs Minister S. Jaishankar’s visit to Sri Lanka scheduled for the coming week.

The first Cabinet Memorandum was to obtain DO-228 Dornier reconnaissance aircraft including two Dornier reconnaissance aircrafts from India to enhance Sri Lanka Navy’s maritime surveillance for feasibility at a security conference between Sri Lanka and India on 9 January 2018 in New Delhi.

However, the latest Cabinet Memorandum stated that one of the two aircrafts will be used by the Navy for maritime surveillance and reconnaissance operations inside and outside Sri Lanka, as well as for surveillance in Sri Lanka’s Exclusive Economic Zone.

A team of five Indian technical officers will be sent to Sri Lanka to service the first Dornier aircraft and to train Sri Lanka Navy and Air Force personnel. Sri Lankan Government will bear their medical, accommodation, telephone, internet, transport and other expenses.

The most serious issue here was that, Secretary to the Ministry of Defence Kamal Gunaratne has signed the exchange letter, pertaining to the agreement provided by the Indian High Commissioner on the 15 March without the approval of the Cabinet.

The Cabinet Memorandum, signed by President Gotabaya Rajapaksa as the Minister of Defence on 18 March 2022 stated that correspondence has to be exchanged prior to the Basil Rajapaksa’s visit to India. Accordingly, it is clear that this deal has been done arbitrarily, bypassing Cabinet altogether.

Another Cabinet Memorandum dated 18 March 2022, signed by President Gotabhaya Rajapaksa as the Minister of Defence, entitled ‘Acquisition of a 4,000 tonnes Floating Dock for the Sri Lanka Navy by the Financial Sponsorship of the Government of India’, is another such agreement.

Accordingly, the contract agreement for the construction of the floating dockyard was scheduled to be signed by Sri Lanka with the Goa Dockyard Company of India on 22 March 2022.

However, the agreement between the two countries has already been signed by authorities on 15 March. It was signed on behalf of Sri Lanka by the Secretary to the Ministry of Defence Kamal Gunaratne and the Indian High Commissioner to Sri Lanka Gopal Bagle.

This agreement was also reached under the guise of ‘pending cabinet approval’. This agreement with India has been reached despite a previous Cabinet decision was taken on 19 February 2020 to acquire the floating dock under international competitive bidding system.

Following all these agreements, the Cabinet Memorandum dated 18 March sought that Commander of the Navy, Vice Admiral Nishantha Ulugethenna be authorised to sign the contract on behalf of the Sri Lanka Navy.

The third is a Cabinet Memorandum titled ‘Providing, Establishing and Commissioning the Maritime Search and Rescue Coordinating Centre’. It describes the background to the agreement, citing the non-implementation of the Cabinet decision of 26 April 2017 to establish a maritime rescue coordinating centre in Sri Lanka.

Accordingly, the centre is to be built using USD 6 million provided by Delhi and has been approved by the Cabinet, dated 9 October 2019. Bharath Electronics Limited, the company selected to set up the centre, manufactures electronics and systems for the Indian military forces and comes under the direct purview of Indian Ministry of Defence..

The fourth agreement is the Cabinet Memorandum submitted by the Ministry of Technology entitled ‘Signing of the Memorandum of Understanding between the Government of India and the Acquisition of Financial Assistance for the Implementation of the Sri Lanka Unified Digital Identity Framework’..

Critics say the digital system collects data on blood type, fingerprints, and facial identities, for good or bad reasons. They further point out that this initiative risks making it easier for Indian security intelligence to acquire the nation’s own database. However, this agreement has not yet been signed and the relevant draft has been prepared.