CPC to take four more years to pay Rs 1200 billion debt transferred to Treasury: Kanchana

• Challenges NPP and SJB to debate on their energy policies, the government’s energy policy and allegations of corruption in the energy sector

By Ajith Siriwardana

The Ceylon Petroleum Corporation (CPC) will take another four years to repay the entire debt of over Rs 1200 billion that was transferred to the Treasury in 2022, Power and Energy Minister Kanchana Wijesekera said yesterday.   He said the Treasury took over Rs 1200 billion (USD 3400 Million) worth of CPCs debt in 2022 and imposed a Rs 25 per litre tax initially and increased it in 2023 to Rs 50 per litre tax to recover the debt by 2029.   The Minister said the estimated debt remaining at the beginning of 2025 will be Rs 656 Billion.  

He said this in a message posted on X in response to a statement made by NPP leader Anura Kumara Dissanayake that he would reduce the fuel prices by removing the Rs 50 per litre tax on fuel which was imposed in 2022 to recover the debt taken over by the Treasury claiming that the debt has been recovered by now and it could be removed.  

“I’m not sure how they come up with these numbers and mislead the public and the voters. The President had to take unpopular but correct decisions to stabilize the economy and the energy sector. Due to those decisions, we have an uninterrupted supply of fuel in the country,” he said.   “I would like to know how AKD will reduce the Rs 50 tax and bridge the gap of Rs 656 billion remaining. Is he going to print money, obtain more loans to repay, increase other taxes or any other way?, he asked.  

The Minister challenged the NPP and SJB to debate on their energy policies, the government’s energy policy and allegations of corruption in the energy sector.