The higher borrowing limit will be used to meet:
- Overdraft and term loans 45 billion rupees
- Provision for letters of credit -- 10 million rupees
- New guarantees for independent power producers -- 19.2 million rupees
The minister blamed the heavy costs on the prevailing drought that has limited hydro power generation. The CEB is now depending on expensive thermal power to provide uninterrupted electricity supply to the country.
As payables to independent power producers have reached peak level, purchasing of fuel from CPC for thermal generation has been limited. IPPs have utilised their credit limit to maximum level, Ranawaka was quoted in the report.
The CEB has secured a 20 billion rupee short-term