CEB pushes CPC into jeopardy

Thursday, 19 January 2023 00:25 - - {{hitsCtrl.values.hits}}

CPC Managing Director Susantha Silva says CEB owes Rs. 108 b to Corporation to-date
Fears inaction to settle dues likely to cause bankruptcy for both SOEs, jeopardising economic activities
Points CEB has responsibility rather than a burden to manage organisation at least to cover operational costs
Denies PUCSL’s claim of CPC providing naphtha and furnace oil to CEB at higher price

CPC Managing Director Susantha Silva

A top official warned yesterday that the failure of the Ceylon Electricity Board to settle its colossal dues running up to over Rs. 100 billion to the Ceylon Petroleum Corporation could jeopardise all economic activities.

“The CPC has provided fuel for the CEB to generate power and the payments due to date amount to Rs. 108 billion.

The inability to settle this colossal amount is causing financial constraints to the Corporation and inaction to the repeated requests made could lead to the collapse of both State-run enterprises, jeopardising all economic activities,” CPC Managing Director Susantha Silva told journalists yesterday.

Pointing out that the CPC provide diesel, naphtha and furnace oil at an affordable price thanks to the Sapugaskanda refinery, he raised concerns that they would not be able to supply oil if the refinery does not have sufficient stocks to operate continuously.

“We pay a huge interest for the loans that the corporation has obtained from the banks. We too import crude oil through credit facilities and it is important we pay the due interest on time. If the CEB is unbothered to settle the due payments for the large quantities of oil supplied, then we will have to make a call in continuing the operations of the refinery,” Silva explained.

Although from an enterprise perspective, CPC will not want to continue business at a loss, the Managing Director said, however as a key SOE, they have a national responsibility towards contributing to the economic development and not towards its nosedive.

“The CEB must also understand as a State-run enterprise that they have a responsibility towards ensuring that the institution should be maintained at least to cover the operational costs without being a burden to the economy at large. Failure to take measures to manage financials will not only lead to the bankruptcy of the CEB but also CPC,” he warned.

When asked if the CPC was providing naphtha and furnace oil to the CEB at a higher cost as claimed by the Public Utilities Commission of Sri Lanka, Silva categorically denied it.

“Sri Lanka will have to pay a higher cost if the country directly imported naphtha and furnace oil. Thanks to the Sapugaskanda refinery that CPC operate, we can provide at this concessionary rate,” he responded to journalists.