CPC incurs Massive loss owing to hedging deal

March 15, 2021

The Ceylon Petroleum Corporation has incurred a loss of over Rs. 13,641 million up to 2019, as a result of a hedging deal, entered with several banks sometime back. According to reports on June 3, 2013, $60 million had been paid to Standard Chartered Bank under the Arbitration Deeds and $27 million to Deutsche Bank on August 04, 2016. The Audit report states that the Ceylon Petroleum Corporation has incurred a loss of Rs. 13,641 million due to this transaction by the year 2019. The Central Bank of Sri Lanka (CBSL) had paid Rs 941.2 million as legal fees altogether, on the hedging deal, out of which. 370.6 million was borne by the CBSL, and the rest to be paid by the CPC. However, now the CPC owes Rs 567 million to the CBSL. Meanwhile, the case filed by the Commercial Bank claiming $ 8.6 million against the CPC at the Commercial High Court in Colombo, had been taken up for hearing from the end of 2019.

CPC incurs Massive loss owing to hedging deal

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