Govt takes over loans of 2.435 billion US dollars borrowed from state banks by CPC
- CNL Reporter
- June 26, 2025
- Banking and Financial, Business News
- CPC
- 0 Comments
Sri Lanka’s government has taken over loans of 2.435 billion US dollars borrowed from state banks by state-run Ceylon Petroleum Corporation, which have been converted to term loans, a Finance Ministry report showed.
In 2024, taxpayers have effectively taken over 788.6 billion rupee equivalent in state bank loans to the CPC, under Treasury guarantees, the Auditor General’s report on Treasury accounts show.A 410.4 billion rupee equivalent forex credit from the Bank of Ceylon to the CPC and default interest of 73.6 billion rupees had been converted to a US dollar term loan.
A 136.6 billion rupee equivalent forex loan and default interest of 30.4 billion rupees had been converted to 224.3 million equivalent dollar term loan.Another 224.3 billion rupee equivalent US dollar loan and default interest of 38.2 billion rupees had been converted to rupee treasury bonds.
By the end 2024, the term loan to the Bank of Ceylon was 1,582 million US dollars, and term loans to the People’s Bank was 546 million dollars. Treasury bonds given to the People’s Bank was 262.58 billion rupees.
The CPC has been forced to take suppliers’ whenever forex shortages emerge after macroeconomists cut rates with inflationary open market operations under ‘central bank independence’.
