Govt to pay off CPC’s debts to State banks

The Government will pay off the debts owed by the Ceylon Petroleum Corporation (CPC) to the People’s Bank and the Bank of Ceylon as part of its program to restructure State banks.

The CPC owes nearly US$ 450 million to the two banks.

Its debts had been increasing even before the country had encountered a fuel crisis. Government sources said that there had been a risk of the State banks collapsing due to this problem. The decision to pay off CPC’s debts was made known during a discussion last week between the President’s Chief of Staff and Senior Advisor, Sagala Ratnayaka, the chairmen of the two State banks, and the Governor of the Central Bank.