Sri Lanka state oil refiner recovering dues from airline, power utility

ECONOMYNEXT – The Ceylon Petroleum Corporation (CPC), Sri Lanka’s state-run refiner, has begun recovering money owed by the state airline and power utility to which it supplied fuel, its chairman Dammika Ranatunga said.

The Ceylon Electricity Board (CEB) owes the CPC Rs 67.7 billion and SriLankan Airlines Rs12.75 billion, he told in an interview.

The power utility and airline together with the government ministries under which they operate had held talks on ways to pay the CPC for fuel already supplied but which had not been paid for, he said.

“We were promised they will pay off within 6 months,” Ranatunga said. “We can’t keep supplying fuel without getting paid.”

The two ministries and agencies involved had agreed to borrow money from banks and pay the CPC, he said.

According to the central bank’s 2017 annual report outstanding trade receivables of the CPC from government entities increased from Rs. 31.1 billion at the end of 2016 to Rs. 74.1 billion by end 2017.

The CEB and SriLankan Airlines accounted for 67.9 per cent (Rs50.3bn) and 17.4 per cent, (Rs12.9bn) respectively, of the total trade receivables of the CPC

(COLOMBO, May 21, 2018)

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