CEB to get Rs. 2 b short-term loan from LECO

• Loan to settle dues to CPC and individual power producers 
• Loan to be settled in two years

The Lanka Electricity Company Ltd. (LECO) Board of Directors last week agreed to grant a short-term loan of Rs. 2,000 million to the Ceylon Electricity Board (CEB) to meet some of its urgent financial commitments to the Ceylon Petroleum Corporation (CPC) and individual power producers.

The money is to be settled in two years at the interest rate LECO is currently recovering in investment with the monthly instalment value of Rs. 91,828,985.98 over the 24-month period. The loan interest will be 9.5%, on par with People’s Bank’s one-year fixed deposit (FD) rate.

LECO has been granting short-term loans to CEB to meet their working capital requirements from time to time, and the last such loan was granted in 2014 and was settled in full. The new loan will be granted on 2 March. The dues to CPC from CEB stand at around Rs. 1,127 million.