The use of furnace oil and diesel for power generation due to the prevailing drought will cause the Ceylon Electricity Board (CEB) a loss of Rs. 51 billion over the next six months, a senior official said yesterday. Power and Renewable Energy Ministry Secretary B.M.S. Batagoda told the Sunday Times this projection had prompted the CEB to request the Finance Ministry to remove the Value Added Tax (VAT) and the Customs duty on fuel.

The request was made formally to Finance Minister Ravi Karunanayake at the recent meeting of the Cabinet Committee on Disaster Management. This is headed by President Maithripala Sirisena.The Secretary said that at this meeting CEB officials had given a detailed briefing on the current power situation.
Dr. Batagoda said the CEB had proposed to the Finance Minister the removal of VAT and the Customs duty on furnace oil and diesel needed to operate power plants. They had had also suggested a removal of VAT and other duties on coal imports. READ MORE…