The Ceylon Petroleum Corporation (CPC) has informed the Ceylon Electricity Board (CEB) to open its own letters of credit for fuel imports and that it will no longer issue letters of credit on behalf of the CEB.
Chairman of the Ceylon Petroleum Corporation Sumith Wijesinghe stated that the decision was taken as the CEB had to pay Rs. 90 billion to the Ceylon Petroleum Corporation for the fuel previously purchased.
Accordingly, the Ceylon Petroleum Corporation has informed the CEB that letters of credit cannot be opened on behalf of the CEB, said the Chairman of the CEB.
In this regard, the General Manager of the Ceylon Electricity Board MR Ranatunga says that the CEB does not have accounts maintained in dollars. He points out that once again obtaining letters of credit will have to rely on the dollar reserves of the People’s Bank and that the Ceylon Petroleum Corporation will have to import fuel or fuel as the CEB does not have permission to do so.