SriLankan Airlines, state refinery reach deal on fuel payments
Jul 04, 2018 15:41 PM GMT+0530 | 1 Comment(s)
ECONOMYNEXT –SriLankan Airlines has struck a deal with state-owned fuel refiner Ceylon Petroleum Corporation (CPC) to settle fuel payment arrears, enabling uninterrupted supplies that allow the national carrier to continue flights.
A petroleum ministry statement quoted CPC Managing Director Neil Jayasekara as saying the deal was reached after talks between the two state firms under which payments would be made in instalments.
The CPC had been bankrolling losses of SriLankan Airlines, giving it aviation fuel on credit. The carrier had run up a fuel bill of US$87.5 million (Rs13.8 billion), the statement said.
Jayasekara said talks were held with participation of Secretary of Ministry of Public Enterprise Development Ranjith Hewawitharana, under which the airline comes, CPC chairman Dammika Ranatunga and Chairman of SriLankan Airlines Ranjith Fernando.
SriLankan has agreed to pay Rs. 800 million out of the arrears of over Rs. 13 billion.
The airline also agreed to get approval of the Cabinet of ministers to take a loan from a private bank to pay the balance amount.
(COLOMBO, July 04, 2018)