Sri Lanka’s CPC financed SriLankan about US$8mn a month

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation has been financing loss-making SriLankan Airlines to the tune of 8 million dollar a month, newly appointed Chairman Ashok Pathirage has said.

SriLankan buys about 14 million dollars of fuel from CPC a month but has been paying only about 6 million dollars a month, he told the parliaments Committee on Public Enterprises.

“When I took over two month ago it was 6 (million dollars,” Pathirage said. “Since then I have requested them to pay 8 (million dollars).”

SriLankan Airlines is one of the top loss-making state enterprises since a privatization to Emirates Airlines was reversed in 2008 and the company was taken back to the state.

Emirates Airlines paid off with money from state banks and also the Employees Provident Fund.

The airline had since been involved in procurement scams and is now at the center of a bribery scandal with former Chief Executive Kapila Chandrasena arrested over money laundering charges related to alleged bribes taken to buy a fleet of Airbus aircraft. (Colombo/Feb21/2020)