CEB Losses Put Tariff Stability at Risk

The Ceylon Electricity Board has posted a Rs. 9 billion loss for the nine months ended September 2025, reversing a massive profit recorded last year and raising fresh concerns over electricity tariffs and IMF reform targets.

Quarterly profit fell by 98% year-on-year, as revenue declined sharply following tariff cuts while generation and administrative costs remained high. The Finance Ministry has identified the CEB as the largest drag on state enterprise performance in the first half of 2025, with average revenue per unit plunging despite rising electricity demand.

The IMF has warned that failure to maintain cost-reflective tariffs and momentum on power-sector reforms could push the utility back into chronic losses, eventually burdening taxpayers and consumers. Analysts caution that unless tariff methodology, accounting practices, and governance improve, Sri Lanka may face renewed pressure for abrupt tariff hikes, undermining both consumer relief and reform credibilit

 

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