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ECONOMYNEXT – Sri Lanka’s Ceylon Petroleum Company began to make earnings from July 2022 after costs had been made price based mostly, Energy and Power Minister Kanchana Wijesekera stated.
Sri Lanka began market pricing gas, fuel and in addition raised electrical energy costs within the run as much as a take care of the Worldwide Financial Fund, as international gas costs rose and the rupee additionally collapsed steeply from round March2022.
The CPC has misplaced 2,900 million rupees in January 2022, 12,000 billion rupees in February, 348,969 million rupees in March, 239,912 million rupees in April, 35,063 million rupees in Might and 678 million rupees in July.
In July the CPC had made earnings of 6,314 million rupees, in August 1,775 million rupees and in September 5,600 million rupees.
The losses in March and April got here from a collapse of the rupee as loans taken to finance earlier oil purchases triggered foreign exchange losses.
The CPC now owed 751 million {dollars} to suppliers and in addition needed to pay 251 billion rupees to the Treasury to repay a credit score line to India, Minister Wijesekera stated.
The debt service price of the CPC was about 30 billion rupees, Minister Wijesekera stated.
The CPC had additionally borrowed round 2.0 billion US {dollars} from state-run banks throughout earlier foreign money crises when cash was printed to suppress charges.
Sri Lanka’s CPC losses come from politician’s obsession to promote gas under prices and macro-economist obsession to print cash to maintain charges down and create foreign money crises.
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