The prevailing exorbitant electricity rates in Sri Lanka indicate that there is no room for further tariff increases without hampering competitiveness. Therefore, the rationale for shifting towards low cost power generation methods and implementation of necessary reforms is of paramount importance, a senior Ceylon Electricity Board said.

To make the CEB a profitable institution, several stringent measures need to be taken. This is the one of the major institutions in the country lacking direction, and carries an enormous debt burden, he pointed out.

However,other officials point out the tariff increase is not sufficient to cover the cost of power generation.

The average tariff in 2008 was Rs. 13.22 per unit, while the average cost was Rs. 14.94 per unit. The estimated average purchased cost of private power was Rs. 20.58 per unit in 2008.

He said that the newly appointed CEB Chairman E. A. S K. Edirisinghe is working out several policies to upgrade the CEB.

The biggest barrier are the many trade unions with different opinions blocking the Board from taking meaningful decisions to uplift the standards of the debt-ridden CEB, he said.

However, The Island reliably learns that CEB Chairman is ready to take up such challenges for the betterment of the CEB.