No decision to stop fuel to Mihin Lanka

Fowzie Rajmi Manatunga

COLOMBO: The Ceylon Petroleum Corporation (CPC) has not taken a decision to discontinue fuel supplies to Mihin Lanka, Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie assured.

Making a special statement to the media yesterday, the Minister said although the airline has exceeded its Rs 22 million bank guarantee for the purchase of fuel, the CPC as a policy does not stop issuing oil to State-owned institutions on non-payment. "Mihin Lanka is a budget airline catering to the ordinary masses. It is our duty to assist such a service. Therefore, we have no intention of discontinuing the supply of fuel to Mihin Air," he said.

Fowzie pointed out that several State institutions including the Ceylon Electricity Board, Sri Lanka Transport Board and the Railways Department owe a staggering Rs 22 billion to the Corporation for oil purchases.

"It is usual procedure to send letters to these institutions demanding immediate payment failing which the fuel supply would be stopped. But we have never discontinued supply to a state institution in that manner".

CPC Chairman Asantha de Mel said the airline has asked for one week to pay the deficit of Rs 28 million.

"We have agreed to grant this request. We are confident that Mihin Lanka will settle the outstanding amount within that period," he said. The CPC has issued fuel to the value of Rs 50 million to Mihin Lanka exceeding its Rs 22 million bank guarantee with the Corporation for the purchase of oil.