Ceylon Petroleum Corporation (CPC) has threatened to halt fuel supplies on credit to Sri Lankan Airlines if the outstanding due amount is not paid by Wednesday (04).
CPC is said to have demanded the airline pay around Rupees One billion before the deadline.
The amount, from an outstanding Rs 14 billion, is said to be needed by the CPC which is currently locked in another payment controversy with the Inland Revenue Department. Last week, the IRD froze the bank accounts of the CPC after it failed to pay up the Value Added Tax (VAT) totalling Rs 1.5 billion for the purchase of petroleum derivatives. The action came with the concurrence of the Treasury and was temporarily settled with the CPC paying Rs. 500 million.
The CPC has also informed the Ministry of Transport and Civil Aviation and the Presidential Secretariat of its decision to cut off fuel supplies to SriLankan. SriLankan Airlines officials have warned that the airlines’ operations would grind to a halt as a result.
CPC Chairman Dhammika Ranatunga has said that in future the CPC will maintain a strict policy regarding overdue payments. The CPC has to collect unpaid dues amounting to Rs 70 billion, including Rs 46 billion from the CEB and Rs 14 billion from SriLankan Airlines.
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