July 02, Colombo: Sri Lanka's state-owned petroleum supplier, Ceylon Petroleum Corporation (CPC) , which has been making losses in the past, has recorded a profit of Rs, 2 billion this year.
The CPC recorded a profit of Rs. 2 billion during the first four months in 2014 compared to the loss of Rs. 8 billion recorded in 2013, the Finance Ministry said in a mid-year report.
The state-owned enterprise has become profitable due to the cost effective pricing policy introduced in 2013 and the fairly stable oil prices in the world market during the period, according to the Ministry's mid-year financial report.
The state-owned petroleum supplier incurred losses of approximately Rs. 95 billion in 2013.
Considering the contribution of the petroleum sector to national economic development and with a view to ensuring energy security, the Government has initiated several measures to facilitate infrastructure development related to importation, refining, storing and distribution of petroleum products, the report said.
CPC's outstanding borrowings from state banks also decreased from Rs. 419 billion at the end of 2013 to Rs. 378 billion as at 30th April 2014.
In order to improve the liquidity position of CPC, Treasury bonds amounting to Rs. 30.69 billion were issued in February 2014 by the General Treasury to settle long outstanding dues to CPC by Government institutions.
The outstanding debts totaling Rs. 26.11 billion to CPC by Sri Lankan Airlines and Mihin Lanka Ltd were also settled during the first quarter of 2014.
In line with the Governments policy for a green economy, CPC introduced environment friendly 92 octane petrol in place of 90 octane petrol with effect from 1st January 2014. Action has also been initiated to introduce an environment friendly alternative to super diesel, the Finance Ministry said.