News

CPC revival report to Cabinet soon

  • Cabinet SC focuses on sales not covering costs

BY Buddhika Samaraweera

The report containing the recommendations of the Cabinet Subcommittee appointed to formulate a plan to recover the Ceylon Petroleum Corporation (CPC) from its present loss-making situation is due to be submitted to the Cabinet of Ministers within the next few days, The Morning learnt.

Ministry of Energy Secretary K.D.R. Olga, when contacted by The Morning, said the non-coverage of the CPC’s cost through the sale of its products, mainly fuel, is a long-standing issue, and that the said report contains a number of recommendations to overcome that situation.

“The CPC is currently making huge losses in the wake of the Covid-19 crisis and rising fuel prices in the world market, but in addition to that, the CPC’s revenue has been below its cost for a long time. Accordingly, recommendations to eliminate that situation were made by the Cabinet Subcommittee,” she said.

Furthermore, she said the report also contains recommendations on the steps to be taken to properly recover debts owed to the CPC by various institutions such as the Ceylon Electricity Board (CEB) and the Department of Railways.

In February this year, Minister of Energy Udaya Gammanpila told the media that the Cabinet of Ministers was informed regarding the threat of bankruptcy at the CPC, adding that, taking the matter into account, a Cabinet Subcommittee was appointed under the patronage of Prime Minister Mahinda Rajapaksa.

The Subcommittee also comprises Minister of Power Gamini Lokuge, Gammanpila, Minister of Industries Wimal Weerawansa, and Minister of Fisheries and Aquatic Resources Development Douglas Devananda.