Sri Lanka CPC makes Rs21.5bn profit in Jan-Apr 2016
ECONOMYNEXT – SrI Lanka’s state-run Ceylon Petroleum Corporation made profits of 21.5 billion rupees in the first four months of 2016, helped by lower oil prices, but dollar loans taken to subsidize fuel in past continues to be a drag, the finance ministry said.
CPC had made operational profits of 27.5 billion rupees in the first four months of the year, but finance costs lowered it to 21.4 billion rupees, the finance ministry said.
In 2015, the CPC had lost 18.3 billion rupees.
The CPC had also cut borrowings to commercial banks to 333 billion rupees by end April 2016, from 373 billion rupees at the end of 2014.
Credit subsidized losses from 2005, had led to accumulated losses of 267 billion rupees.
Credit financed losses of the CPC and Ceylon Petroleum Corporation which are finally accommodated by with central bank credit (printed money) had led to currency crises and high inflation in Sri Lanka.
CPC is expected to market price fuel on a formula from the end of 2016 with a debt repayment component added to it. (Colombo/July04/2016)