CPC could halt fuel on credit to SriLankan from Wednesday: Chairman

Ceylon Petroleum Corporation (CPC) will be compelled to stop issuing aviation fuel on credit to the national carrier SriLankan Airlines from Wednesday (4) if they don’t settle what is already owed, CPC Chairman Mr. Dammika Ranatunga said today.

Speaking to Daily Mirror, he said following a Cabinet decision last week, SriLankan had agreed to comply with the credit limit given.

SriLankan has to pay an outstanding of over Rs. 12 billion accrued over a period of three years to the CPC and will have to pay at least Rs. one billion of it before Wednesday’s deadline to prevent an interruption to supply of fuel.

Last week the Inland Revenue Department froze CPC’s bank accounts after it failed to pay the Value Added Tax (VAT) of Rs. 1.5 billion for the purchase of petroleum derivatives.

CPC has to collect unpaid dues amounting to around Rs. 70 billion, including Rs. 46 billion due to it from the Ceylon Electricity Board (CEB).

SriLankan officials said their flight operations would be disrupted and many flights would have to be cancelled if the CPC maintains its hardline stance on the matter.  

Transport and Civil Aviation Minister Nimal Siripala de Silva and Petroleum Resources Development Minister Arjuna Ranatunga are to meet and hope to come to a compromise after Tuesday’s Cabinet meeting. (Thilanka Kanakarathna)