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CPC will supply fuel until SriLankan is privatised
The Ceylon Petroleum Corporation (CPC) has been instructed to continue to provide fuel to the loss-making SriLankan Airlines despite the outstanding bills running to more than Rs 8,000 million, with the Treasury paying up the bills, officials said.
The decision was taken this week at a meeting attended by Petroleum Minister Chandima Weerakkody and officials of the Treasury, the CPC and SriLankan Airlines to discuss the repayment of outstanding debts.
Mr. Weerakkody said that in view of the decision the CPC had extended the credit period by a month.
“We cannot continuously take over the loss as it is turning out to be a burden on the CPC,” he said.
State Finance Minister Lakshman Yapa Abeywardena said that with the plans to privatise the management of the SriLankan Airlines which has incurred a loss of nearly Rs. one billion, the Treasury would be able to make the repayments to the CPC.
The CPC now pays up to Rs. 1,200 million to two state banks as loan instalments for fuel imports.
CPC Chairman T.C. Jayasinghe told the Sunday Times that after SriLankan Airlines’ debtt the next highest outstanding debt was of the Ceylon Electricity Board (CEB). It owed the CPC Rs. 3,426 million.
The other outstanding bills were from Sri Lanka Railway (Rs. 598 million), Sri Lanka Navy (Rs. 652 million), Sri Lanka Army (Rs. 744 million), Western Provincial Road Development Authority (Rs. 428 million), Maganeguma (Rs. 304 million), Sri Lanka Air Force (Rs. 311 million) and RDA (Rs. 195 million) as at March 31 this year.
The state institutions have to pay a total of Rs 15.3 billion to the CPC.