CEB in talks with state banks to help CPC to get dollars for thermal plant fuel

The Ceylon Electricity Board ( CEB) is holding talks with state banks to help the Ceylon Petroleum Corporation ( CPC) to obtain dollars required to buy fuel for the CEB's thermal power plants.

CEB General Manager M. R. Ranatunga told Sunday Times that CEB could play a facilitator role to enable the dollar transfer from state banks to the CPC.

To run the thermal plants, the CEB needs fuel by the first week of February and to buy this stock USD 30 million is needed, he said, adding that talks have been held with the Bank of Ceylon (BOC) and the People’s Bank.

“Since we do not have legal powers, we cannot open LCs to buy fuel. That authority remains with the CPC only. However, supplying of power is a national duty, and therefore, to release dollars to the CPC, we held discussions with state banks and we hope to receive a favorable response,” the General Manager said.

CPC chairman Sumith Wijesinghe said that based on the agreement with the CEB, the CPC would take steps to order the required stocks of fuel.

“This cannot be done on our own. But it will be possible if we get together and do it,” he said.

Two weeks ago, in a communication to Sri Lankan Airlines, the CEB and other state institutions, the Ministry of Energy said it would not be able to provide fuel to them due to the dollars crisis in the country.

The CEB owes the CPC Rs. 90 billion due to fuel purchases.

Meanwhile, CEB sources said that by February- March they may have to purchase up to 300MW of emergency power.

However, the General Manager said that no decision has been taken as yet in this regard.