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Petroleum Ministry asks Treasury to intervene to recover Rs. 62 bn from state institutions
View(s):The Ministry of Petroleum Resources Development has urged the Treasury to intervene to recover more than Rs.62 billion due from various state institutions including SriLankan Airlines and the Ceylon Electricity Board (CEB), a senior ministry official said.
Secretary to the Ministry Upali Marasinghe told the Sunday Times that several discussions have been held with the Treasury to secure at least part of the funds as they were required to make future fuel purchases without falling into debt.
He said that the debts of the Ceylon Petroleum Corporation (CPC) were on the rise due to the expenditure required for fuel purchases.
“In addition to the losses incurred by providing fuel at a subsidised rate the CPC is also forced to pay back loans from two state banks adding to the losses,” he said.
Mr. Marasinghe said the biggest debt was due from the CEB amounting to Rs.48 billion followed by SriLankan Airlines which owes the Ceylon Petroleum Corporation (CPC) over Rs.10 billion. More was owing from the Sri Lanka Transport Board, Railway Department, police and armed forces.
A senior Treasury official said the government was currently not in a position to repay the loans and discussions are underway to look into the possibility of reducing the debt.