Credit for CPC

The Ceylon Petroleum Corporation (CPC) is covering overdue Government accounts with an Iranian credit, a top official said.

Iran has given the CPC a rolling credit to cover four months of imports interest free and another three months with interest, which the utility started using from the first quarter of 2008. CPC chairman Ashantha de Mel said his firm had used about $500 million of the credit so far.

De Mel said earlier that he preferred to use the four months of interest free credit. Sri Lanka imports crude from Iran.

De Mel said a large debtor was the state run Ceylon Electricity Board (CEB) to which diesel was sold at 85 rupees a litre.

The CPC has come under pressure to cut prices, especially in petrol, as global prices plummeted.

Petrol is now retailed in Sri Lanka at more than double the Singapore price benchmark price.

Iran Daily 2008