Huge losses from CPC, CEB, Srilankan and Mihin Lanka for year 2012

Expect oil price hike along with electricity

International competition and high fuel price increased the losses; Central Bank

There is a problem with government income; IMF

CEB (Ceylon Electricity Board), CPC (Ceylon Petroleum Corporation), Srilankan Air and Mihinlanka have reported a huge losses of 172.4 billion rupees for year 2012 and it is more than 2 percent of the GDP. 

According to 2012 Central Bank report, CEB and CPC have borrowed 245 billion rupees from bank system and it was only 84.4 billion rupees in year 2011. As well as 20 percent of total BOC loans has been granted to CPC. 

Comparing with year 2011, the total income of Srilankan Air has increased by 36.1 percent to 107.4 Bn. And the operational expenses have increased by 30.6 percent to 128 billion rupees. According to Central Bank, these losses are due to high international competition among the airlines and the high fuel expenses.

IMF (International Monitory Fund) recently expressed that there is a problem with government income and tax income fails to recover the expenses. They further stated that if this situation continue, it would be difficult to the government to maintain the budget deficit in 2013.

Posted by Unknown 4/14/2013