LIOC Woes

The Treasury Secretary disputed subsidy claim by Lanka IOC (LIOC), fuel retailer, which is owed over Rs. 7 billion despite a bullish report on the company earlier in the week by a stock analyst. The Treasury Secretary disputed subsidy claim by Lanka IOC (LIOC), fuel retailer, which is owed over Rs. 7 billion despite a bullish report on the company earlier in the week by a stock analyst. LIOC has been in talks with the government to recover the money it says the government owes the company.

“Claims are disputed. I do not know why they are taking the issue to the media. Undisputed amounts are paid. I wish to take up those issues in professional forums, not in political forums,” says P B Jayasundera, Treasury Secretary.

Government paid Rs. 700 million last year but owes Rs. 7 billion more according to LIOC.

Controversy erupted over Lanka IOC’s overdue subsidy payments after the Public Enterprises Reform Commission, which carried out the restructuring of the petroleum sector for the government, told the company it is only entitled to a subsidy if it incurred a loss.

PERC in its letter sent on July 12, last year has also produced an opinion from the Attorney General supporting its