CBSL Chief calls on CPC, CEB to diversify banking sources

Monday, 27 November 2023 00:59 - - {{hitsCtrl.values.hits}}

The Central Bank Governor Dr. Nandalal Weerasinghe on Friday stressed the need for the Ceylon Petroleum Corporation (CPC) and the Ceylon Electricity Board (CEB) to diversify their banking sources beyond State banks.

With a cost reflective pricing mechanism now implemented for both CPC and CEB, he highlighted the importance of exploring banking options beyond State banks.

Diversifying banking sources can not only provide these entities with a broader financial landscape but also contribute to encouraging healthy competition among various banks, leading to improved balance sheets for State-Owned Enterprises (SOEs).

Over an extended period, efforts have been made to reduce exposures and Dr. Weerasinghe expressed optimism about the potential for further expansion, particularly as both CPC and CEB are currently operating profitably.

“I don’t see any reason why they aren’t expanding their exposures when both CPC and CEB are now making profits. They will be able to service without expanding their exposures further,” stated the Governor.

Although foreign loans of the CPC are absorbed by the Government, he said the rupee losses were not.

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