Dec 30, Colombo: The losses incurred by the state run electricity board of Sri Lanka, the Ceylon Electricity Board (CEB) will see a reduction due to the rains experienced in the hydropower catchment areas.

The CEB's losses this year are expected to be reduced by over Rs. 5 billion due to the increase in hydropower generation as catchment areas have received heavy rainfall.

The CEB was to record a loss of Rs. 45-50 billion due to the increase in thermal power generation when the prolonged drought earlier in the year reduced the water levels in the hydropower reservoirs.

The cost of producing a unit of thermal energy varies from Rs 24 to Rs 60 while producing a unit of hydropower electricity costs only Rs 6.50.

The hydropower generation in the country reduced to less than 20 percent during the drought experienced in the country a few months ago.

Hydropower generation has increased to 80.5 percent of daily requirement while the reservoir storage capacity has reached nearly 85 percent.