CPC burdened with staggering losses due to overstaffing and other state agencies not settling monies owed to it

By Ifham Nizam

The Power and Energy Ministry took steps to pay USD 34 Million on Tuesday (21) for a cargo of Heavy Fuel Oil/Furnace Oil.

Power and Energy Minister Kanchana Wijesekara said yesterday that the vessels carrying the fuel was being unloaded yesterday (22) and the stock would be used for power generation and industries.

Wijesekera said plans were underway to limit the daily power cut to two hours and 30 minutes, though the electricity sector regulator, the Public Utilities Commission wanted to extend it to three hours until the second plant of the Norochcholai Power Plant Complex was restored.

He also said that the Ceylon Petroleum Corporation had supplied more than USD 300 million worth of fuel on credit before 2019.

“During the past two years they have paid for all supplies,” Wijesekera told journalists recently. “But from before 2019 for a long period there is an outstanding of USD 300 million, which should be paid back to the CPC,”

“The CPC is running at losses partly due to supplying fuel to other state agencies on credit, but they do not pay on time”, he said.

“The Ceylon Electricity Board, Sri Lanka Railways also owe money to the CPC”, he said.

In a tweet earlier in the day, Minister Wijesekera said the staff number was “staggering”, which is one reason the CPC makes losses while Lanka IOC does not.

Prime Minister Ranil Wickremesinghe recently said Sri Lanka needed to strengthen the rupee, in line with the daily requirements of its citizens.

He said that another USD 1 billion was needed to strengthen the rupee. “That means we have to find USD 6 billion to keep the economy afloat for the next six months.