Sri Lanka’s CPC makes Rs75bn in profits up to December 2016

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Electricity Board has made a profit of 75 billion rupees up to December 2016, helped by lower petroleum prices, Petroleum Minister Chandima Weerakkody said.

Weerakkody told parliament that the utility had made a profit of 69.5 billion rupees up to September 2016, despite cutting prices.

The CPC had also cut loans to state banks from 373 billion rupees at the end of 2015, to 282 billion rupees by end August 2016.

Lower outstanding loans also reduces interest costs.

Deputy Petroleum Minister Anoma Gamage said the new administration had cut 95 Octane petrol by 33 rupees a litre from 156 to 128 rupees, 92 petrol from 150 to 117 a litre, auto diesel from 111 to 95 a litre, super diesel from 133 to 110 and kerosene from 81 to 44 rupees.

Property oil, gold, and food commodities rose up to 2008 as the Federal Reserve printed money to create an asset and commodity bubble by depreciating the rupee.

Though the US dollar rose after the bubble burst, the Fed again pumped up prices by quantity easing. But with US monetary policy now on a tightening path, oil, gold and other commodity prices are stable or falling.

The Organization of Petroleum Exporting Countries (OPEC), which shows it teeth when the Fed prints money is now desperately trying and failing to boost prices as it did during the ‘Great Moderation’ in the 1980s. (Colombo/Dec08/2016)

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