GROUP INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30th June 2021 (Unaudited)

Finance Division 50,Sir Chittampalam A.Gardiner Mawatha, Colombo 02. CEYLON ELECTRICITY BOARD CONSOLIDATED STATEMENT OF PROFIT OR LOSS (All amounts in Rupees Thousands)

Group Board For the period ended For the quarter ended For the period ended For the quarter ended Change Change Change Change For the six months ended 30th June 2021 2020 2021 2020 2021 2020 2021 2020 % % % %

Revenue 139,986,868 125,255,261 11.8% 73,392,414 65,403,589 12.2% 121,507,347 113,203,354 7.3% 61,759,303 56,891,876 8.6% Consession provided to Domestic Customers (196,184) - 100.0% (529) - 100.0% (196,184) - 100.0% (529) - 100.0%

Cost of Sales (130,075,658) (131,430,980) -1.0% (61,608,815) (60,096,869) 2.5% (120,885,264) (127,573,333) -5.2% (54,728,207) (55,647,157) -1.7%

Gross Profit / (Loss) 9,715,026 (6,175,719) -257.3% 11,783,070 5,306,720 122.0% 425,899 (14,369,979) -103.0% 7,030,568 1,244,719 464.8%

Other Income & Gains 7,942,029 4,780,314 66.1% 4,623,731 2,695,404 71.5% 3,559,836 3,278,678 8.6% 1,867,617 1,444,116 29.3%

Distribution Cost (109,375) (93,881) 16.5% (34,350) (11,670) 194.3% ------

Other Expenses (1,336,540) (1,304,906) 2.4% (1,157,537) (952,218) 21.6% ------

Administrative Expenses (4,843,938) (4,042,073) 19.8% (1,974,850) (2,058,608) -4.1% (2,222,678) (2,403,626) -7.5% (1,027,327) (1,223,541) -16.0%

Operating Profit / (Loss) 11,367,201 (6,836,264) -266.3% 13,240,065 4,979,628 165.9% 1,763,057 (13,494,926) -113.1% 7,870,857 1,465,294 437.2%

Finance Income 1,194,676 628,020 90.2% 618,396 670,583 -7.8% 260,238 212,198 22.6% 121,922 62,428 95.3%

Finance Cost (7,544,832) (9,585,008) -21.3% (4,421,456) (6,786,710) -34.9% (6,571,331) (8,673,211) -24.2% (3,616,771) (5,981,155) -39.5%

Finance Cost-Net (6,350,156) (8,956,988) -29.1% (3,803,059) (6,116,127) -37.8% (6,311,093) (8,461,012) -25.4% (3,494,848) (5,918,726) -41.0%

Share of loss of Joint Venture (3,885) (3,416) 13.7% (1,470) (912) 61.2% ------

Profit / (Loss) Before Income tax 5,013,161 (15,796,667) -131.7% 9,435,536 (1,137,410) -929.6% (4,548,036) (21,955,938) -79.3% 4,376,009 (4,453,433) -198.3%

Income Tax Expense (2,382,108) (1,612,556) 47.7% (886,357) (223,252) 297.0% - (88,299) -100.0% - - 0.0%

Profit/(Loss) for the period 2,631,052 (17,409,224) -115.1% 8,549,179 (1,360,661) -728.3% (4,548,036) (22,044,238) -79.4% 4,376,009 (4,453,433) -198.3%

Attributable to:

Equity Holders of the Parent (936,230) (19,828,294) 8,042,477 (1,820,347) Non Controlling Interest 3,567,282 2,419,071 506,703 459,686 2,631,052 (17,409,224) 8,549,179 (1,360,661)

Page 1 CEYLON ELECTRICITY BOARD CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (All amounts in Sri Lanka Rupees Thousands)

Group Board For the period ended For the quarter ended For the period ended For the quarter ended Change Change Change Change For the six months ended 30th June 2021 2020 % 2021 2020 % 2021 2020 % 2021 2020 %

Profit/ (Loss) for the year from continuing operation 2,631,052 (17,409,224) -115.1% 8,549,179 (1,360,661) -728.3% (4,548,036) (22,044,238) -79% 4,376,009 (4,453,433) -198%

Other Comprehensive Income

Actuarial loss on post employment benefit obligation 7,157 5 - - - Exchange differences on translation of foreign subsidiary 276,128 operations 1,144,968 314.7% - Fair value gain on available for sale financial assets 29,000 24,000 -17.2% - Total Comprehensive Income for the year, net of tax (17,104,091) (1,360,661) 3,807,178 -122.3% 8,549,179 -728.3% (4,548,036) (22,044,238) -79.4% 4,376,009 (4,453,433) -198.3%

Attributable to:

Equity Holders of the Parent 18,536 (19,579,947.09) 8,042,477 (1,820,347.44) Non Controlling Interest 3,788,642 2,475,856.51 506,703 459,685.99 3,807,178 (17,104,091) 8,549,179 (1,360,661)

Page 2 CEYLON ELECTRICITY BOARD CONSOLIDATED STATEMENT OF FINANCIAL POSITION (All amounts in Sri Lanka Rupees Thousands)

Group Board Change Change As At 30.06.2021 31.12.2020 % 30.06.2020 31.12.2020 % ASSETS

Non-Current Assets Property, Plant & Equipment 843,429,383 835,795,922 0.9% 820,369,967 793,743,849 3.4% Intangible Assets 511,524 512,455 -0.2% 142,176 157,577 -9.8% Investment in Subsidiaries - - - 911,813 911,813 0.0% Investment in Joint Venture 26,872 30,757 -12.6% 328,606 328,606 0.0% Finance Lease Receivables 21,281,834 19,588,944 8.6% - - - Other Non-Current Financial Assets 22,089,853 24,418,096 -9.5% 7,599,620 9,164,689 -17.1% Other Non-Current Assets 1,076,551 2,160,224 -50.2% 1,073,891 1,484,474 -27.7% Investments of Insurance Reserves Fund 10,272,937 9,980,730 2.9% 10,272,937 9,354,843 9.8% 898,688,954 892,487,128 0.7% 840,699,010 815,145,850 3.1%

Non Current Assets Held For sale 76 76 - 76 76 - Current Assets Inventories 64,016,475 52,113,549 22.8% 55,787,068 51,105,511 9.2% Trade and Other Receivables 89,385,485 79,261,983 12.8% 70,706,760 66,497,548 6.3% Amounts due from Related Parties - - - 2,838,064 5,984,255 -52.6% Finance Lease Receivables 949,628 1,015,236 -6.5% - - - Other Current Financial Assets 36,710,689 33,652,650 9.1% 2,983,655 3,366,828 -11.4% Cash and Cash Equivalents 9,420,033 9,632,295 -2.2% 4,416,798 3,672,142 20.3% 200,482,311 175,675,713 14.1% 136,732,346 130,626,283 4.7% Total Assets 1,099,171,341 1,068,162,917 2.9% 977,431,431 945,772,209 3.3%

EQUITY AND LIABILITIES Capital & Reserves Contributed Capital 391,730,584 391,730,584 0.0% 391,730,584 323,194,038 21.2% Reserves 54,088,321 52,807,115 2.4% 39,341,284 37,216,529 5.7% Retained Earnings/ (Loss) (142,774,997) (142,625,238) 0.1% (172,273,271) (110,473,071) 55.9% Equity Attributable to the Equity Holders of the Parent 303,043,906 301,912,460 0.4% 258,798,597 249,937,497 3.5% Non Controlling Interest 28,782,366 34,622,330 -16.9% Total Equity 331,826,273 336,534,790 -1.4%

Non-Current Liabilities and Deferred income Interest Bearing Loans & Borrowings 387,523,477 357,676,324 8.3% 374,284,612 341,731,776 9.5% Consumer Deposits 15,971,055 15,640,570 2.1% 15,971,055 15,284,650 4.5% Provisions & Other Deferred Liabilities 21,816,403 21,801,592 0.1% 20,120,599 10,482,144 92.0% Lease Payable 179,327 #DIV/0! Government Grants 271,274 278,934 -2.7% 192,800 48,205,944 -99.6% Contract Liabilties 100,549,821 100,694,746 -0.1% 95,663,398 88,520,027 8.1% Deferred Taxation 1,320,655 489,800 169.6% 527,452,686 496,581,967 6.2% 506,232,463 504,224,541 0.4% Current Liabilities - Trade and Other Payables 183,483,186 189,330,262 -3.1% 177,593,895 156,422,878 13.5% Dividend Payables 3,544,996 905,034 291.7% - - - Amouts Due to Related Parties - - - 1,071,937 2,989,788 -64.1% Interest Bearing Loans & Borrowings 48,052,235 41,798,351 15.0% 32,463,774 30,926,740 5.0% Income Tax Payable 4,811,970 3,012,513 59.7% 1,270,766 1,270,766 - 239,892,386 235,046,160 2.1% 212,400,373 191,610,172 10.9%

Total Equity and Liabilities 1,099,171,341 1,068,162,917 2.9% 977,431,431 945,772,209 3.3%

The Board of Directors and the management are responsible for the preparation and presentation of these financial statements.

……………………… ……….………………… …………………………………. ………………………. Chairman Vice Chairman General Manager Finance Manager

Date :

Page 3 CEYLON ELECTRICITY BOARD CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (All amounts in Sri Lanka Rupees Thousands)

Asset Group Contributed Capital Depreciation Replacement Invetment Self Insurance Fairvalue Development Retained Non Controlling Total Capital Reserve Reserve Reserve Reserve Reserve Reserve Reserve Earnings Interest Balance as at 01.01.2020 (Restated) 323,194,038 19,197,852 24,000 312,494 5,930,351 18,540,372 6,060,529 17,325 (88,317,951) 31,655,309 316,614,318 Profit/(Loss) for the period (19,828,294) 2,419,071 (17,409,224) Actuarial Gain/loss on retirement benefits 5 5 Net gain loss on Fair Value through OCI Investments 14,927 14,073 29,000 Exchange Equivalization Reserve 81,760 194,368 276,128

Total Comprehensive income - Interest income from Insurance Reserve Fund 93,892 93,892 Transferred to Development reserve 2,500 (2,500) - Transfer to Investment reserve 160,077 (160,077) - Interest received from customers 13,069 13,069 Ownership change without changing Controlling Power 70200 70,200 Dividends - Ordinary Shares - Balance as at 30.06.2020 323,194,038 19,292,681 24,000 312,494 6,090,428 18,634,263 6,075,456 19,825 (108,308,817) 34,353,021 299,687,389

Balance as at 01.01.2021 391,730,584 19,337,879 25,000 312,494 6,330,543 20,647,189 6,126,685 27,325 (142,625,238) 34,622,330 336,534,790 Profit/(Loss) for the period (936,230) 3,567,282 2,631,052 Actuarial Gain/loss on retirement benefits 7,157 7,157 Net gain loss on Fair Value through OCI Investments 12,353 11,647 24,000 Exchange Equivalization Reserve 364,557 780,412 1,144,968

Total Comprehensive income - Interest income from Insurance Reserve Fund 77,035 77,035 Transferred to Development reserve - Transfer to Investment reserve 817,000 817,000 1,634,000 Interest received from customers 10,261 10,261

Subsdiary shares (864,728) (864,728) Adjustment - - - Dividends - Ordinary Shares (9,299,983) (9,299,983) Balance as at 30.06.2021 391,730,584 19,712,697 25,000 312,494 7,147,543 20,724,224 6,139,038 27,325 (142,737,311) 28,816,959 331,898,552

Page 4 CEYLON ELECTRICITY BOARD STATEMENT OF CHANGES IN EQUITY (All amounts in Sri Lanka Rupees Thousands)

Loan Self Board Contributed Other Capital RHCP Redemption Depreciation Insurance Retained Total Capital Reserves Reserve Reserve Reserves Reserve Earnings Balance as at 01.01.2020 (Restated) 323,194,038 165,446 948,638 17,447,063 24,000 18,524,422 (103,940,038) 256,363,571 Profit/(Loss) for the period ------(22,044,238) (22,044,238) Interest income from Insurance Reserve Fund - - - - - 93,892 - 93,892 Interest received from customers - - 13,069 - - - - 13,069

Balance as at 30.06.2020 323,194,038 165,446 961,708 17,447,063 24,000 18,618,314 (125,984,275) 234,426,294

Balance as at 01.01.2021 391,730,584 165,446 985,239 17,447,063 25,000 20,631,240 (167,725,235) 263,259,337 Profit/(Loss) for the period ------(4,548,036) (4,548,036) Interest income from Insurance Reserve Fund - - - - - 77,035 - 77,035 Interest received from customers - - 10,261 - - - - 10,261 - Balance as at 30.06.2021 391,730,584 165,446 995,500 17,447,063 25,000 20,708,275 (172,273,271) 258,798,597

Page 5 CEYLON ELECTRICITY BOARD CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in Sri Lanka Rupees Thousands)

Group Board For the six months ended 30th June 2021 2020 2021 2020

Cash Flows From / (Used in) Operating Activities Profit/(loss) before tax 5,013,161 (15,796,667) (4,548,036) (21,955,938)

Adjustments for Depreciation and Amortization 16,854,468 16,357,445 16,327,186 15,501,807 Goodwill impairment - 62,304 Consumer Contribution (1,632,044) (1,802,833) (1,632,044) (1,802,833) Government Grant (7,534) (7,359) (7,534) (7,359) Income from Investments (694,152) (194,947) Electric Vehicle Charging Card utilization (869) (1,161) (869) (1,161) (Profit)/Loss on sales of Property,Plant and Equipment (5,892) (35,064) (28,600) (30,785) (Profit)/Loss on Joint Venture Investment 3,885 3,416 Finance Income (500,165) (432,135) (260,238) (212,198) Dividend Income (2,742,120) (507,974) - (88,299) Lease Interest 6,405 7,793 6,405 7,793 Income adjustment on Finance Lease Receivable 590,558 743,301 - - Finance Costs 7,520,632 9,585,008 6,571,331 8,673,211 Provision for Obeselete & Unserviceable Cost 153 72 153 - Provision for price Variance (1,632,927) (91,584) (1,632,927) (91,584) Foreign currency (1,340,008) (50,214) - - Provision for Impairment of Debtors 61,276 73,450 - - Bad debt written off 26 - - - Defined Benefit Plans 406,168 408,213 284,442 339,901 Operating Profit/(Loss) before Working Capital Changes 21,901,022 8,321,062 15,079,268 332,554 (Increase)/ Decrease in Inventories (10,299,407) (3,260,453) (9,902,897) (2,947,772) (Increase)/ Decrease in Trade and Other Receivables (10,135,419) (20,143,689) (1,576,246) (14,402,689) Increase/ (Decrease) in Trade and Other Payables (2,448,522) (25,866,790) (8,696,034) (32,064,290) Cash Generated from Operations (982,326) (40,949,870) (5,095,908) (49,082,198) Finance Cost paid (7,520,632) (9,585,008) (6,571,331) (8,673,211) Retirement Benefit Obligation (381,939) (343,263) (284,442) (339,901) Income Tax Paid (655,935) (531,458) - - Net Cash From/(Used in) Operating Activities (9,540,832) (51,409,598) (11,951,681) (58,095,310) Cash Flows from / (Used in) Investing Activities Acquisition of Property, Plant & Equipment (784,857) (80,986) (565,032) (458,543) Acquisition of Intangible Assets (6,118) (206,806) (6,118) (65,869) Net Investment in Financial Assets (22,833,901) (33,129,699) (25,665,023) (29,002,010) Re-Investment in Insurance reserves Fund (292,207) (357,950) (292,207) (357,950) Interest Income on Insurance Escrow Fund 77,035 93,892 77,035 93,892 Interest Received 1,194,314 627,082 260,238 212,198 Investment Income 1,368,767 (467,508) - - Dividend Income 2,742,120 419,675 - - Shares issued to NCI 51,975 70,200 - - Sale Proceeds of Fixed Assets Disposals 28,600 30,785 28,600 30,785 Net Cash Flows from/(Used in) Investing Activities (18,454,271) (33,001,317) (26,162,506) (29,547,498)

Cash Flows from (Used in) Financing Activities Consumer Contribution 3,716,675 1,325,346 3,716,675 1,325,346 Redemption of shares (277,114) (670,496) - - Electric Vehicle E-card Prepayments 721 856 721 856 Fund Received for ADB-RHCP projects 10,261 13,069 10,261 13,069 Consumer Deposit Received 406,063 317,532 406,063 317,532 Consumer Deposit Refund (75,578) (46,672) (75,578) (46,672) Government Grant Received - 48,000,000 - 48,000,000 Lease Rentals Payment (119,474) (31,715) (22,267) (31,715) Proceeds From Interest Bearing Loans & Borrowings 41,958,440 43,520,785 43,958,440 41,956,846 Repayment of Interest Bearing Loans & Borrowings (9,507,180) (4,561,672) (7,533,830) (3,422,678) Net Cash Flows from/(Used in) Financing Activities 36,112,814 87,867,033 40,460,484 88,112,583 Net Increase/(Decrease) in Cash and Cash Equivalents 8,117,711 3,456,117 2,346,297 469,776 Cash and Cash Equivalents at the beginning 12,209,313 (7,305,509) (9,596,222) (9,312,387) Cash and Cash Equivalents at the end 20,327,024 (3,849,392) (7,249,925) (8,842,611)

Page 6 CEYLON ELECTRICITY BOARD EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS Quarter ended 30th June 2021

1. Reporting Entity

Ceylon Electricity Board (“Board”) was incorporated under Ceylon Electricity Board Act No.17 of 1969 and domiciled in Sri Lanka. The Head Office of the Board is situated at No.50, Sir Chittampalam A Gardiner Mawatha, Colombo 02.

2. Basis of Preparation

The interim condensed Group Financial Statements of the Board comprise the consolidation of the Board and its subsidiaries, LTL Holdings (Pvt) Ltd, Lanka Electricity Company (Pvt) Ltd, Sri Lanka Energies (Pvt) Ltd, Lanka Company (Pvt) Ltd and its joint venture company, Power Company Ltd for the six months ended 30th June 2021.

The Group Financial Statements have been prepared in accordance with LKAS 34 Interim Financial Reporting. The figures in these financial statements are provisional & subject to audit unless otherwise stated.

The accounting policies adopted in the preparation of the interim condensed financial statements are consistent with those followed in the preparation of the Board’s Group Financial Statements for the year ended 31st December 2020. The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group annual financial statements as at 31st December 2020.

No circumstances have arisen and no material events have occurred since the reporting date, which require disclosures or adjustments to the financial statements.

The interim condensed financial statements are presented in Sri Lankan Rupees (LKR) and all values are rounded to the nearest thousand (Rs.000), except when otherwise indicated.

3. Contingent Liabilities

There have been no material changes to the contingencies disclosed in the annual financial statements for the year ended 31st December 2020.

4. Event Occurring After the Reporting Date

There have been no material events occurring after the reporting period that require adjustments to or disclosure in the financial statements.

5. Contributed Capital Information

The contributed Capital of the Board as at 30th June 2021 is Rs.391,731 Mn and the sole capital contributor is the Government of Sri Lanka.

6. There are no liabilities to Management Fees or any other similar expenditure not provided in the interim accounts

Page 07 CEYLON ELECTRICITY BOARD EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS Quarter ended 31st March 2021

7. Debenture Information

Description Interest Issue Date Maturity Coupon Interest Rate Amount Payable (Alloted Date Rate of Rs. frequency date) Compatible 30.06.2021 Government Security Senior Unsecured Listed 16th April 15th April Annually 9.35%P A 7.05% 20,000,000,000 Redeemable 2021 2026 Rated Debentures

7.1 Use of funds raised through Debenture issue

The funds raised through debenture issue will be utilised to settle the outstanding balances of Independent Power Producers and the Ceylon Petroleum Corporation

8. Financial Ratios

Ratio As at 31.12.2020 As at 30.06.2021 1. Debt/equity ratio 1.41 1.57 2. Current ratio 0.55 0.64 3. Interest cover (2.34) 0.47

Page 8

CEYLON ELECTRICITY BOARD CORPORATE INFORMATION

Name of the Entity Subsidiary Companies Ceylon Electricity Board

Legal Form LTL Holdings (Pvt) Ltd Lanka Electricity Company (Pvt) Ltd The Ceylon Electricity Board (CEB) is a Lanka Coal Company Ltd body corporate established in Sri Lanka by Sri Lanka Energy (Pvt) Ltd the Act of Parliament No. 17 of 1969 amended by Act Nos. 31 of 1969, 29 of Joint Ventures 1979, 32 of 1988 and 20 of 2009. Trincomalee Power Company Limited

Principal Activities and Nature of Auditors Operations The Auditor General The principal activities of the Board were Auditor General’s Department No 306/72, Polduwa Road generation, procurement, transmission, Battaramulla. effective distribution and sale of electricity.

Bankers Head Office Peoples Bank No. 50, Sir Chittampalam A Gardiner No. 75, Sir Chittampalam A Gardiner Mawatha, Colombo 2 Telephone (011) 232 4471 Mawatha, Colombo 2 Fax (011) 244 9572 web site: www.ceb.lk

Board of Directors Eng . Vijitha Herath – Chairman N S Ilangakoon – Vice- chairman M M Nayeemudeen – Member S D J Nilukshan – Member Dr B. Wijayarathne – Member Ruban Wickramarachchi – Member V P K Anusha Palpita – Member

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