Upul finally wins CPC vote on hedging

The Ceylon Petroleum Corporation (CPC) has decided to go in for hedging options from the end of the month, a proposal that was made by a Sri Lankan commodity specialist many years back.

CPC Chairman Ashantha De Mel said they would be calling offers for hedge options shortly. “Oil prices are down now and it’s ideal to lock in prices at these rates,” he said adding that the Sri Lankan specialist Upul Arunajith has been appointed a consultant to advise the CPC on this project.

Arunajith, a Chartered Marketer and Derivates Markets Specialist in Toronto, has been knocking on the doors for the past four years trying to convince authorities that a combination of hedging, swap and futures options on oil contracts could save the country millions of rupees. The Sunday Times FT has been highlighting this issue for months.