Central Bank in its annual review of the economy warned that wasteful subsidies are hindering public investment.
Last year the government spent a massive Rs. 16 billion on subsidizing fuel.
Much of this money owed to the state owned Ceylon Petroleum Corporation (CPC) and the private Lanka IOC are still to be paid.
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Lanka IOC CEO told LBR earlier his company was owed over Rs.
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4 billion for a fuel subsidy calculated on a formula as part of the 5 year agreement for the petroleum sector.
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CPC, which is in to down stream marketing and runs a refinery, is owed over Rs. 6 billion.
The state run former monopoly was paid over Rs. 8 billion as a subsidy for the first three quarters of last year by being a