COLOMBO (EconomyNext) – Sri Lanka’s state-run oil refiner, Ceylon Petroleum Corporation (CPC), has returned to making losses by April 2015 after a marginal profit in the first two months of the year, official data showed.
The government has said it is planning to a new energy policy o make entities like the CPC and Ceylon Electricity Board self-financing.
During the first two months of 2015, CPC recorded a marginal profit supported by the reduction in international oil prices, a government report said.
CPC was also helped by “cost reflective pricing methodologies” applied under the administrative pricing mechanism and also from increased hydropower generation in first four months in 2015, it said.
However the marginal profit in first two months turned to a loss of 5 billion rupees by end-April after the government slashed fuel prices in its January interim budget.
During the same period of (January to April) 2014, the CPC made a profit of 2 billion rupees and it ended 2014 with an overall profit of 7 billion rupees.