The Ceylon Petroleum Corporation (CPC) has incurred a loss of Rs. 13,641 million in 2019 due to hedging, according to an audit report released by the National Audit Office for the year 2019.
The corporation was called in as part of the settlement process for future securities agreements with several commercial banks in connection with hedging deals. As of June 3, 2013, $ 60 million had been paid to Standard Chartered Bank under the Arbitration Deeds. $ 27 million was paid to Deutsche Bank on August 4, 2016. According to the information received, the corporation has incurred a loss of Rs. 13,641 million due to this transaction by the year 2019.
The Central Bank of Sri Lanka had spent Rs. 941.2 million on legal expenses related to the Corporation’s hedging transaction. 370.6 million was borne by the Central Bank of Sri Lanka and 567 million rupees had not been repaid by the Corporation to the Central Bank during the period from 2011 to 2014.