In the first quarter of 2012 CPC has been given a 62 billion rupee bond which is equal to about half a percent of gross domestic product to settle oil given on credit to other state entities.
According to earlier reports these included the Ceylon Electricity Board and SriLankan Airlines.
Analysts have pointed out that the losses at energy utility stem from budget decisions to manipulate energy prices which then covered by increases in national debt which do not get captured in the previous year's budget.
In 2011 Sri Lanka said the budget deficit fell to 6.9 percent of gross domestic product from 8.0 percent in 2012.It is not clear whether the bond cost is captured in the current year's budget. Minister Premajayantha said in 2009, the CPC has taken a 25 billion rupee bank loan to pay taxes to the Treasury, another move that would have made budget numbers look better.
In 2011 CPC ran a loss of 94.5 billion rupees due to price manipulation.
Minister Premjayantha has told parliament that the CPC also owed 1.95 billion US dollars to state-run Bank of Ceylon which was borrowed at London Interbank Offered Rate plus 6 percent but it would fall to 427 million US dollars by June, with monthly repayments.
By October 2012 it was expected to pay down the loan completely, he said.
The exact words used in the parliamentary Hansard transcription is US dollar rupees million.
Central Bank data shows that state enterprises had foreign currency loans worth 182.5 billion rupees by end April 2012 or 1.4 billion US dollars.
The CPC also owed the equivalent of 979 million rupees to state-run People's Bank which has been reduced to 201 million rupees by June, Premajayantha has said.
Minister Premajayantha had said the by end 2011, the CPC had long term debts which was the equivalent of 28.4 billion rupees.
This included 721 million rupees from the Asian Development Bank (at 14 percent interest), 184 million rupees from an Indian credit line and 2.5 billion rupees from India's Exim Bank in addition to 25 billion rupees from Bank of Ceylon.
Foreign currency loans from People's Bank and Bank of Ceylon had risen to 123.9 billion rupees by end December 2011 from just 3.1 billion rupees a year earlier.
Borrowing from state banks and energy price manipulation are key triggers of Sri Lanka's economic instability and exchange rate weakness.
When petroleum utilities borrow from banks and run losses, its customers spend more than they would have otherwise done, increasing imports and eventually expanding the trade deficit by the amount borrowed and putting pressure on interest rates and exchange rates.
When the Central Bank tries to control the exchange rate and the interest by simultaneously printing money and selling foreign exchange the rupee depreciates.
The rupee fell from 110 to around 130 rupees since heavy energy tariff and interest rate manipulations began from mid 2011. In March energy prices and interest rates were raised.
Raising energy prices reduces non-oil imports while higher interest rates allow banks to raise more deposits to finance credit, again curbing consumption.
In March energy prices were raised.