Sri Lanka CPC loss Rs5bn in the first four months to April 2015

July 2, 2015 (LBO) – Sri Lanka’s Ceylon Petroleum Corporation, reported a loss of 5 billion rupees by the end of month of April 2015 despite the oil price reduction of the world market, state statistics report showed.

The CPC’s total cost of the petroleum products imports during the first four month is around 90 billion rupees which is a 22 percent reduction when compared to petroleum products imports of 115 billion rupees during the same period of the year 2014.

“During the first two months of the year 2015, CPC recorded a marginal profit supported with the reduction in oil prices in the international market and the cost reflective pricing methodologies applied under the administrative pricing mechanism,” the report said.

“However the marginal profit recorded in first two months has been turned around to a loss of Rs. 5 billion by the end of month of April 2015.”

During the same period of January to April 2014, CPC has recorded a profit of 2 billion rupees and this profit trend led the CPC to end up with overall profit amount to 7 billion rupees at the end of the year 2014.

In the interim budget 2015, the new administration reduced the selling prices of main petroleum products namely petrol, diesel and kerosene to pass through the benefit of the price reduction of the international market to the consumers with effect from mid-January 2015.

CPC’s outstanding borrowings from two state commercial banks decreased from 375 billion rupees at the end of 2014 to 350 billion rupees as at 30th April 2015.

General Treasury has proposed to issue Treasury bonds amounting to 100 billion rupees during the year 2015, to strengthen the financial position of CPC.

Measures have been taken to issue the first tranche of the Treasury bond valued up to 25 billion.