The high electricity tariff allowed no room for further tariff increases without hampering competitiveness. The rationale for shifting to low cost power generation and reforms was of paramount importance, a senior Ceylon Electricity Board official said.

To make the CEB profitable a number of strict measures should be taken. Although a major institution, the CEB lacked direction and was immersed in a huge debt, he said.

Several other officials pointed out that the tariff increase proposal was 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.

The new CEB Chairman E. A. S. K. Edirisinghe was working on a number of policies to upgrade the CEB, an official said.

The barrier against the CEB reforms was the number of trade unions with different opinions, not allowing the Board to take meaningful decisions to uplift the standards of the debt ridden CEB.

The Chairman said he was ready to take such challenges for the betterment of the CEB. He has said "the CEB is going without a direction. I will do my best to correct this."

CEB’s operating losses increased to Rs. 35 billion in 2008. An increase of expenditure due to high oil prices was the main reason.

The long term loans had amounted to Rs. 64 billion by the end of 2008.