Credit Limits

Mar 10, 2013 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation, to which state-run airlines owe 30.9 billion rupees and a petroleum utility 28.3 billion rupees will limit credit to state agencies this year, a media report said. Minister Yapa said the CPC was paying interest to state banks on loans taken to cover unpaid dues from state agencies.

Officials have said that last year CPC paid 18 billion rupees in interest.

Sri Lanka’s The Sunday Times newspaper quote petroleum minister Anura Yapa as saying that agencies with no revenue that exceed the credit limit will have to go to parliament for a supplementary estimate and pay up.

State agencies with revenue will have to open their own letters of credit and import fuel.

The newspaper said loss-making state-run SriLankan Airlines owed the utility 27.4 billion rupees, Mihin Air, another loss making state budget carries owed it 3.5 billion rupees.

The Ceylon Electricity Board owed it 28.3 billion rupees. The CPC also sold the CEB subsidized furnace oil.