Business Times

Govt. postpones restructure of CEB, CPC

The Government is holding back on restructuring of the hugely, loss-making Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) as the country’s financial situation is seen improving, the International Monetary Fund (IMF) has been informed.

In both cases, the losses – though no figures are immediately available - have accumulated due to billions of rupees owed to the two state institutions by other big, government spenders, according to economists.

On Thursday, the IMF announced that it disbursed approximately $216.6 million at end of the sixth review under the Stand-by Arrangement (SBA). With this disbursement, a total of $1.5 billion has been received thus far by Sri Lanka under the SBA facility that was approved in July 2009.

In a January 17 letter to the IMF jointly signed by the Deputy Finance Minister Gitanjana Gunawardena and Central Bank Governor Ajith Nivard Cabraal on economic situation, the Government said the macroeconomic environment continues to be strong. Output growth has increased, inflation remains at a single digit despite pressure on food prices, interest rates have stabilized and private-sector credit growth has picked up.

“While the target on net international reserves was likely to be missed, the deviation was explained by a higher-than-anticipated ‘pay-down’ of certain public sector foreign exchange liabilities. On this basis we request a waiver of non observance for this performance criterion,” it said.

The Board of Investment is being re-positioned to focus on the identification of potential foreign investors and facilitating their activities, the IMF was told

The country’s foreign reserves have gone up to $6.8 billion which is equal 6.2 months worth of imports.
The letter said that in line with the budget, tax concessions have been reduced for foreign investments. “Flexibility would be retained under our Strategic Investment Law to offer concessions to strategic investment projects but all projects will be subject to Nation Building Tax and Economic Service Charge,” it added.

At a press conference on Thursday, IMF’s Sri Lanka Representative Dr Koshy Mathai cautioned against not implementing budget targets. The letter to the IMF said that while the polices set out in this ‘the Letter of Intent’ are adequate to achieve the stated objectives, the government said it was prepared to take additional measures as appropriate to ensure achievement of its objectives.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Kalpitiya resort bids cancelled
Forged passports – are job agents responsible?
Crisis-hit Bangladesh apparel buyers turn to Sri Lanka
Govt. postpones restructure of CEB, CPC
Colombo Stock Exchange goes gold in March
Buoyant Ceylon Tea riding high this year
Comforting your aching feet! These shoes are meant for walking
Eminent Lankan astrologer predicts mixed results for Sri Lanka
Retaining the IMF
Sri Lanka’s apparel industry withers GSP+ storm
New life for loss-making government firms
JAAF intervenes to boost the image of 'Juki girls'
SL exports to Asia vital to regain highs
Australian course on soft-skills in Sri Lanka
Sunshine Holdings group post-tax up 38%
Watawala Plantations says 'remarkable growth in profit ' last year
ODEL shows strong 9-month growth, turnover up 42%
Amaya group after tax profits up 4,502% on Reefcomber sale
Subsidy for coconut producers
Tokyo Cement poised for better growth:RAM Ratings
Haycarb reports pre-tax profit of Rs. 548 million for 9 months
Large part of A9 highway to Jaffna re-constructed by local engineers
Heritance Hotels group wins awards for ‘Cleaner Production’
Tourism renaissance in Negombo, Jetwing leads the way
Around 200 homes awaiting registration in home-stay tourism concept
Golden opportunity of demographic bonus to trigger economic growth
‘Polkudu’ treatment for heart ailments
London School of Commerce opens Colombo unit
Ceylon Leather revamping their look, keeping their feel
Cinnamon Hotels holding group after tax profits up 236%
India's Zensar targets Rs. 1 bln from SL in 2 years
Leo Burnett tops Gunn report in new world thinking
Top Sri Lankan expat appointed to Brandix board
Lankan tour guides lament over hard times and reduced commissions
BOI chief Jayampathi quits Hayleys
NCCSL embarks on new work plan to improve trade with Asia
Efutures’ remittance solutions to premier banks
Short week at the Colombo bourse sees dull trades, no lustre
20 to adopt newly-launched Microsoft Lync


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 1996 - 2011 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved | Site best viewed in IE ver 8.0 @ 1024 x 768 resolution