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2021ID: SL-GUAR-2021-007 (SL-PB-GUAR-2021-CEB)

Ceylon Electricity Board (CEB) Sovereign Guaranteed Working Capital Loan

ලංකා විදුලිබල මණ්ඩලය (CEB) රජයේ ඇපකර මත ලබාගත් බැංකු ණය පහසුකම

ACTIVETreasury Guaranteed

Official Agreement: Government Guarantee on Credit Facility Issued by People's Bank / Bank of Ceylon to CEB

Original Principal$425 MLKR 85,000,000,000

Current Outstanding$325 MRs. 98,150 M

Principal Repaid$100 MInterest Paid: $88.5M

Interest Rate12.5%FLOATING (AWPR + 1.50% floating commercial bank lending rate)

Why Was This Loan Taken? Officially Stated Purpose

Working capital support to settle unpaid Independent Power Producer (IPP) thermal generation dues and fuel import arrears.

ස්වාධීන විදුලි නිෂ්පාදකයින්ට (IPP) සහ ඉන්ධන සැපයුම් සඳහා වූ හිඟ මුදල් පියවීම සඳහා වූ ක්‍රියාකාරී ප්‍රාග්ධන ණය පහසුකම.

Responsible MinistryMinistry of Power & Energy

Implementing AgencyCeylon Electricity Board (CEB)

Project Site / ScopeNational Power Grid Operations

Full Contractual Terms & Financing Conditions

CreditorPeople's Bank / Bank of Ceylon (State Commercial Banks)Sri Lanka

Borrower EntityCeylon Electricity Board (Guaranteed by General Treasury)SOE_CEB

Signing Date2021-08-15Effective: 2021-08-20

Final Maturity2028-12-31Original: 2026-08-15

Interest Rate12.5% (FLOATING)AWPR (Average Weighted Prime Lending Rate)

Grace Period1 YearsPrincipal moratorium

Repayment FrequencyQUARTERLYEQUAL PRINCIPAL

Commitment FeeNot publicly availableOn undisbursed balance

CONTRACTUAL TIMELINE

Loan Duration & Repayment Schedule Architecture

Total Tenure: 6 Years

Agreement Signing2021-08-15Year: 2021

Grace Period Moratorium1 YearsInterest only (No principal due)

Principal Repayment Starts2022-06-30Frequency: QUARTERLY

Final Maturity2028-12-31853 Days Remaining

Amortization Method: EQUAL PRINCIPAL

Repayment Window: 5 Years

2024 Sovereign Debt Restructuring Treatment

DOMESTIC_DEBT_OPTIMIZATION

Original Contract Terms (Pre-Restructuring)

5-year commercial bank facility guaranteed by Treasury at AWPR+1.50%.

Original Maturity: 2026-08-15

Post-Restructuring Terms (2024 Agreement)

Transferred to Treasury balance sheet under SOE debt restructuring / absorption plan with extended maturity to 2028.

New Maturity: 2028-12-31

Treatment: PAR (0% Haircut)

Government in Office & Political Context When Signed

President / Head of StateGotabaya Rajapaksaගෝඨාභය රාජපක්ෂ

Prime MinisterMahinda Rajapaksa

Finance MinisterBasil Rajapaksaබැසිල් රාජපක්ෂ

Constitutional Record: This loan was executed under the official mandate of the Gotabaya Rajapaksa Administration. The sovereign obligor is the Democratic Socialist Republic of Sri Lanka.

Auditor General Official Record

Auditor General Report on Treasury Guaranteed SOE Liabilities (2022)

State guarantees issued to SOEs exceeded statutory 10% ceiling under Fiscal Management Responsibility Act.

Financial Impact Noted: Rs. 85,000 Million

Status: PARLIAMENT_COPA_DIRECTED

Cabinet & Parliament Approvals

Cabinet Paper: CP/21/1410/08 (2021-07-28)

Approved issuing Treasury Guarantee for Rs. 85 Billion People's Bank/BOC credit facility to CEB.

Parliamentary Hansard / Act: Fiscal Management (Responsibility) Act Guarantee Ceiling Gazette

Approved under Appropriation Act limits

Payment-level contract amortization schedule not publicly disclosed by creditor.

Aggregate annual repayments and outstanding balances are reported under CBSL Public Debt Bulletin.

Verified Document Library & Primary Sources

Tier: PRIMARY_OFFICIAL

Central Bank of Sri Lanka Annual Report 2025 (Public Debt Operations)Central Bank of Sri Lanka (CBSL) | Published: 2026-04-30

Verify Source

Ministry of Finance & Planning - Public Debt Management Bulletin (Q4 2025)Department of Public Debt, Ministry of Finance | Published: 2026-02-15

Verify Source