Sri Lankan energy utilities lose Rs150bn in 2012, bank debt Rs245bn

Apr 10, 2013 (LBO) - Sri Lanka's state energy utilities lost 150.9 billion rupees in 2012, which is equal to 2.0 percent of gross domestic product, while debt taken from banks to fund losses rose 53 percent to 245 billion rupees, official data shows. The Ceylon Electricity Board made an operational loss of 61.2 billion rupees, up from 19.3 billion rupees and Ceylon Petroleum Corporation lost 89.7 billion rupees, down from 94.5 billion rupees a year earlier, the Central Bank said it is annual report.

In 2012 the CPC raise the prices of some subsidized fuel sold to the CPC.

Bank borrowings by the two utilities had risen 84.4 billion rupees (1.1 percent of GDP) to 245 billion rupees during the year (3.2 percent of GDP). Fitch Ratings has said that 20 percent of all loans by Bank of Ceylon were to the CPC.

Of that CPC had borrowed 53.7 billion rupees.

"The continuous increase in operational losses of CPC has also resulted in a loss in tax revenue to the government," the Central Bank said.

"Further, CPC’s increased borrowings from the banking sector to finance its oil bills increased the banking sector’s exposure to the CPC."

Though state-run Sri Lanka Airlines had settled 18 billion rupees out of dues of 26 billion rup