Gammanpila explains how CPC ran up loss of 57 billion

By Saman Indrajith

The Ceylon Petroleum Corporation (CPC) has suffered a loss of Rs 57,000 million during the first five months of this year, Energy Minister Udaya Gammanpila told Parliament yesterday (09).

Responding to a question raised by Badulla District SJB MP Chaminda Wijesiri, the Minister said there had been several causes of the loss. “The CPC sold diesel at a loss of Rs. 14 a litre. Even after the recent price hike we are a country where the fuel prices are very low. Our prices are second only to Pakistan.

“We borrow in dollars but when we settle the loans the rupee value against the dollar has depreciated. Similarly, the interest too increases every time the dollar value increases. We have to match the depreciating value. Our loss in rupee is around 80 billion because of the depreciation. If the Opposition has any specific details of frauds or malpractices they can refer them to me and I promise that punishment will be meted out without considering the rank or status of anyone found guilty.

“We have taken action to recover the outstanding dues from the SriLankan airline. The CPC has been given Rs. 22 billion treasury bonds. A committee headed by the Prime Minister has been appointed to formulate recommendations to solve the financial crisis in the CPC.

The dues from the SriLankan airline to the CPC were Rs. 58.3 billion rupees. The CPC recorded a 39-billion-rupee operational profit in 2020 and the net profit was at Rs 2.2 billion, however it suffered a loss of Rs 57 billion during the first five months of the current year, the minister said.