Minister of Energy Kanchana Wijesekera has outlined the key reasons for the Ceylon Petroleum Corporation (CPC) to incur losses.
In a Twitter message, the Minister said the following are the multiple reasons for CPC losses.
- Selling products at subsidized rates for years
- Rupee Depreciation – purchases made before March were for 90-180 days of credit purchased at Rs. 203 and the payback rate is Rs.367-390
- Dues from SriLankan airlines – USD 300 million, Ceylon Electricity Board- Rs. 60 billion
- High Premiums, Demurrage, and Bank Interest due to the financial situation
- Overstaffed, Inefficient, and Overpaid
- 25% salary increment on a collective agreement since 2012
- Not operating Refinery and depending more on imported Refined products
- High Distribution costs