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Thursday July 18th, 2024

Sri Lanka’s CPC in profits from July 2022, forex loans drive Rs600bn loss

ECONOMYNEXT – Sri Lanka’s Ceylon Petroleum Corporation started to make profits from July 2022 after prices were made cost based, Power and Energy Minister Kanchana Wijesekera said.

Sri Lanka started market pricing fuel, gas and also raised electricity prices in the run up to a deal with the International Monetary Fund, as global fuel prices rose and the rupee also collapsed steeply from around March2022.

The CPC has lost 2,900 million rupees in January 2022, 12,000 billion rupees in February, 348,969 million rupees in March, 239,912 million rupees in April, 35,063 million rupees in May and 678 million rupees in July.

In July the CPC had made profits of 6,314 million rupees, in August 1,775 million rupees and in September 5,600 million rupees.

The losses in March and April came from a collapse of the rupee as loans taken to finance earlier oil purchases triggered forex losses.

The CPC now owed 751 million dollars to suppliers and also had to pay 251 billion rupees to the Treasury to repay a credit line to India, Minister Wijesekera said.

The debt service cost of the CPC was about 30 billion rupees, Minister Wijesekera said.

The CPC had also borrowed around 2.0 billion US dollars from state-run banks during previous currency crises when money was printed to suppress rates.

Sri Lanka’s CPC losses come from politician’s obsession to sell fuel below costs and macro-economist obsession to print money to keep rates down and create currency crises.

Related

Sri Lanka, South Asia currency crises, World Bank survey in shock revelation

Sri Lanka heading for uncertainty with low rate obsession: Bellwether

A World Bank survey found that only 2 percent of ‘experts’ in South Asia knew that central banks created currency trouble. (Colombo/Oct19/2022)

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  1. sacre blieu says:

    The public has been forced to pay for the sins of a privileged few corrupt fraudsters. With such a goldmine like the CPC, how can it make a loss by even earning a modest profit from such a huge turnover? Surely there is obviously much wrong with the governance of this kingdom. Ironically The LIOC and LLUB are well ahead.

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  1. sacre blieu says:

    The public has been forced to pay for the sins of a privileged few corrupt fraudsters. With such a goldmine like the CPC, how can it make a loss by even earning a modest profit from such a huge turnover? Surely there is obviously much wrong with the governance of this kingdom. Ironically The LIOC and LLUB are well ahead.

Sri Lanka to conduct threat assessments for presidential candidates

ECONOMYNEXT – Sri Lanka’s President Ranil Wickremesinghe has submitted a cabinet paper proposing security measures for presidential candidates and former presidents, following the recent attack on former US President Donald Trump during a campaign rally in the USA.

“This proposal suggests the appointment of a committee to conduct threat assessments and provide necessary security for Presidential candidates as well as former Presidents,” a statement from his media division said.

The committee will include the Secretary of the Ministry of Public Security as Chair, the Chief of Defence Staff, the Inspector General of Police, the Chief of National Intelligence, and the Senior Deputy Inspector General of Police/Elections.

A Deputy Inspector General of Police will be appointed to oversee all security arrangements.

The committee and the designated officer will work closely with the Election Commission to ensure seamless coordination of security arrangements, the PMD said.

After today, July 17, Sri Lanka’s Election Committee is empowered to announce a date for the presidential polls due to be held this year.

Minister of Foreign Affairs M U M Ali Sabry has said the election will be held on October 5 or 12.

Members of the Samagi Jana Balawegaya (SJB) have said that the government should be accountable for the security of Opposition Leader Sajith Premadasa, the SJB’s presidential candidate. (Colombo/Jul17/2024)

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Sri Lanka rupee closes flat at 303.80/304.00 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed almost flat at 303.80/304.00 to the US dollar on Wednesday, from 303.70/304.00 to the US dollar on Tuesday, dealers said, while bond yields were down.

A bond maturing on 15.12.2026 closed at 10.60/75 percent, down from 10.82/92 percent.

A bond maturing on 15.12.2027 closed at 11.60/38 percent, down from 11.65/75 percent.

A bond maturing on 01.05.2028 closed at 11.72/78 percent, down from 11.80/90 percent.

A bond maturing on 15.09.2029 closed at 12.05/10 percent, down from 12.05/20 percent. (Colombo/Jul17/2024)

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Sri Lanka stocks close down, John Keells, Hemas, Hayleys push turnover

ECONOMYNEXT – The Colombo Stock Exchange closed down on Wednesday, data on its site showed.

The broader All Share Index closed down 0.41 percent, or 48.44 points, at 11,830; while the more liquid S&P SL20 Index closed down 0.52 percent, or 17.91 points, at 3,456.

Turnover was 1.2 million. A big part of this (Rs597mn) came from John Keells Holdings Plc (down at 194.25).

“There was foreign buying interest on John Keells and Hemas,” Softlogic Stockbrokers said.

“We saw foreign interest in selective counters persist.”

Hemas Holdings Plc contributed Rs143mn to the turnover, and the share closed down at 81.10.

Hayleys Plc contributed Rs156mn to the turnover, and the share closed up at 101.50.

The three crossings made up 67 percent of the turnover.

The capital goods counters, with all the bluechips, was the leading sector contributing to the day’s turnover.

With the exception of Hayleys and a couple of other companies, the counter saw most stocks close down or flat.

Sentiment around the banking counters also remained negative.

“The volatility in investor sentiments persisted. There are a lot of spectators in the market over the last few weeks, despite some positive news coming in.”

Treasury bill and bond rates have also dropped.

The top contributors to the ASPI were Melstacorp Plc (up at 86.00), SMB Finance Plc (up at 0.70), and TeeJay Lanka Plc (up at 40.00).

There was a net foreign inflow of 392 million. (Colombo/Jul17/2024)

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