Government institutions, private power plants and airlines owed the Ceylon Petroleum Corporation (CPC) more than Rs. 63.6 bn despite a large chunk of the debts being settled during the first two months of this year, Minister of Petroleum Resources Susil Premjayantha told Parliament yesterday.
The Ceylon Electricity Board, which had been biggest debtor till December last year, with over Rs 67.2 bn, had by the end of February paid the CPC nearly Rs. 60 billion to settle its arrears.
Sri Lankan Airlines, which had a fuel bill of over Rs.12.3 bn had settled the full amount by the end of February while Mihin Air, which owed the CPC around Rs. 12 billion, had paid off all its debts except for Rs. 19 million, Minister Premjayantha said in response to a question raised by UNP MP Dayasiri Jayasekera.
The institutions that still owed the CPC large amounts included the Sri Lanka Railways (around Rs. 3.4 bn), Sri Lanka Navy (around Rs. 7 bn) and the Sri Lanka Army (around Rs. 2 bn), he said.
Minister Premjayantha added that all State institutions were given one month to settle their dues.
The 30-day credit period also applied to State-owned commercial enterprises such as airlines while private sector institutions such as private power plants operated with a credit limit and bank guarantees or advance deposits. That ensured that the trade debts did not go beyond the acceptable limits and guarantees’ given.
The iSland: