The Finance Ministry has requested the Ceylon Petroleum Corporation (CPC) to extend its credit facility to the cash strapped national carrier for a further period, State Minister of Finance Eran Wickramaratne told the Sunday Observer.
The CPC announced early this month that it will supply fuel to the national carrier only for two more months if the airline fails to repay its debt of Rs. 36 billion to the CPC.
The warning by the CPC to SriLankan Airlines over debt settlement triggers discussions between the parties with the mediation of the Finance Ministry to ensure that the matter is resolved efficiently.
Minister Wickramaratne told the Sunday Observer yesterday that the Ministry has requested the CPC to extend its credit facility to the airline. “We are going to repay the debt in monthly installments. The CPC is discussing this matter. We will reach a conclusion soon,” the State Minister said.
However, the Board of Directors of the CPC will decide on the supply of fuel to SriLankan Airlines at the next board meeting on August 15, CPC Chairman G.S. Vithanage told the Sunday Observer.
Nonetheless, Vithanage who is also the Chairman of the airline said that the national carrier is yet to finalise the debt repayment plan and seeks assistance from the Finance Ministry.
“SriLankan Airlines is going through a financial crisis. It is not in a position to repay these debts. We expect relief from the Finance Ministry,” Vithanage said.