Sri Lanka transfers balance CPC forex crisis bank debt to government

 Sri Lanka has transferred the balance remaining of Ceylon Petroleum Corporation bank debt to the central government, official data shows, as part of restructuring state enterprise balance sheets under an International Monetary Fund program

State-run banks gave over loans to the Ceylon Petroleum Corporation as forex shortages emerged from inflationary rate cuts (rates suppressed with reverse repo operations or sterilized dollar sales interventions).

In December 2023 credit to state corporations went down by 350 billion rupees to 769.8 billion rupees (about a billion US dollars) while credit to government, which includes new debt taken (mostly to roll over interest), went up 562.5 billion rupees to 8,285 million dollars, central bank data showed.

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