Finance Ministry officials have agreed to hold discussions with the Ceylon Petroleum Corporation (CPC) officials next week, following the decision of the CPC to halt fuel supply to SriLankan Airlines as the National Carrier exceeded the debt ceiling provided by CPC, the Sunday Observer learns.
SriLankan Airlines, controlled by the Ministry of Finance as its principal shareholder, is indebted to the CPC to the tune of Rs. 36 billion approximately. The CPC announced last week, that it would supply fuel to the national carrier only for two more months if the airline failed to repay its debt.
Responding to the decision taken by the CPC, the State Minister of Finance Eran Wickramaratne told the Sunday Observer last week that he will hold immediate discussions with the CPC.
“The State Minister has not spoken to us about this yet. However the Ministry of Finance wants us to meet them next week, though the date is yet to be confirmed” the chairman of CPC and SriLankan Airlines G.S. Vithanage said.
He said, “This decision was taken by the Board of Directors (BoD) at the CPC. It is not my decision, though I discussed the matter with the BoD of SriLankan too. They are also helpless as the institution is a loss making entity”.
Meanwhile the CPC issued a warning to the Ceylon Electricity Board, as they have also exceeded the CPC debt ceiling of Rs. 80 billion. However, the CEB managed to capitalize a loan of Rs 15 billion from the Bank of Ceylon of which Rs. 10 billion had been paid to the CPC as the first tranche of the loan repayment. The balance Rs 5 billion had been paid for Independent Power Plants (IPP).
“We are now eying on releasing Rs. 15 billion worth debenture aiming to capitalize the next loan repayment to CPC. We are still in discussion with the People’s Bank on that” Director Development, Ministry of Power and Energy Sulakshana Jayawardene said.