CoPE flags Rs. 594 b loss at CEB between 2014-2022

Saturday, 27 September 2025 01:33 - - {{hitsCtrl.values.hits}}

Alleges mismanagement and rule violations
Losses triggered steep tariff hikes in August 2022, though CEB became profitable post-2023
CoPE raise concerns over unclear shareholding structures of LTL and affiliated companies
Non-delivery of vehicles worth Rs. 124 m and reveals unauthorised provident fund loans exceeding Rs. 6.6 b
Discloses Rs. 507 m in unapproved allowances and no permanent internal auditor for 11 months

The Committee on Public Enterprises (CoPE) has revealed that the Ceylon Electricity Board (CEB) incurred a staggering loss of Rs. 594.36 billion between 2014 and 2022, excluding 2015, largely due to internal inefficiencies and mismanagement.

The revelation came during a COPE meeting chaired by MP Dr. Nishantha Samaraweera on Wednesday, where the Auditor General’s report on the CEB’s performance for 2022 and 2023 was reviewed.

COPE noted that continuous losses forced steep tariff hikes in August 2022, severely burdening consumers. While officials confirmed that the CEB turned profitable after 2023, they admitted that past power cuts, lasting up to 18 hours, were linked to the Ceylon Petroleum Corporation’s (CPC) debt issues, not technical faults.

Serious concerns were also raised about irregularities in the shareholding of LTL, West Coast, and ESOT companies, with CoPE deciding to summon LTL before the Committee next month.

The Committee also flagged misuse of public funds, including the non-delivery of six vehicles worth Rs. 124 million for the Puttalam Coal Project, unauthorised provident fund loans exceeding Rs. 6.6 billion and Rs. 507 million in allowances paid without Cabinet approval. It also expressed displeasure over the absence of a permanent internal auditor for nearly a year.

COPE stressed the urgent need for accountability, transparency, and structural reforms at the CEB to protect public resources and prevent a recurrence of such financial mismanagement.

The MPs S.M. Marikkar, Dayasiri Jayasekara, Mujibur Rahman, Sujeewa Senasinghe, Asitha Niroshana Egoda Withana, Chandima Hettiarachchi, Nilanthi Kottahachchi, Ruwan Mapalagama, M.K.M. Aslam, Thilina Samarakoon, Jagath Manurwana, Dhamapriya Wijesinghe, Dinesh Hemantha, and Lakmali Hemachandra participated in this committee meeting.