CPC gets approval to directly buy dollars for fuel supply purchases

Co cabinet spokesman Udaya Gammanpila said that the cabinet has decided to grant approval for the Ceylon Petroleum Corporation (CPC) to directly buy dollars needed for fuel supply purchases.

“The largest foreign exchange dealing is done by the CPC, they import Rs 2 billion worth of petroleum products per year. Therefore the cabinet has decided to grant approval to CPC to directly buy dollars with the approval of the central bank”, Minister Gammanpila told the post cabinet news conference.

Apart from that the cabinet has decided to appoint a four member subcommittee under the leadership of Prime Minister Mahinda Rajapaksa to formulate an action plan to stop CPC suffering losses and being driven towards bankruptcy due to providing fuel for concessionary rates.

The members of the subcommittee are Minister of power Dullas Alahapparuma, Minister of Energy Udaya Gammanpila, Minister of industries Wimal Weerawansa and Fisheries Minister Douglas Devananda.

Co cabinet spokesman as well as the Minister of Energy Gammanpila elaborated that from 2014 to 2020 CPC has spent Rs 39.2 billion on providing kerosene, however the treasury has only provided a concession of Rs 4.5 billion.

“The CPC provides fuel for electricity production by bearing losses, and as a result of this there is a Rs 600 billion debt to be paid to the CPC. That is the biggest amount of debt in Sri Lanka,” he said.

He elaborated that apart from that there is another 100 billion to be paid to the fuel suppliers, therefore the cabinet decided to appoint the committee to stop CPC from being bankrupt due to issuing fuel for concessionary rates.