Oct 17, 2021

Laugfs losses affect ETF & EPF ; Oil stocks only enough till January

With Laugfs Gas incurring huge losses, the Employees Provident Fund (EPF) and Employees Trust Fund (ETF), in which the company is a shareholder, have been affected as well, reports say.

Laugfs Gas has a 17.28% stake of the EPF and also has the right to vote internally.

In the ETF, Laugfs owns a stake of 0.06%.

BoC & People's Bank, at risk

Meanwhile, Energy Minister - Udaya Gammanpila has informed Finance Minister Basil Rajapaksa that prevailing fuel stocks will only suffice until next January and if the Finance ministry does not allow an immediate price hike or offer concessions, the Ceylon Petroleum Corporation (CPC) will face a huge issue.

Speaking to media recently, minister Gammanpila has pointed out that the CPC is currently incurring a loss of Rs. 83 billion and urged the Finance Minister to provide an immediate solution.

Speaking recently, the minister said that it was a responsibility to to prevent the CPC from going bankrupt. However, if this does happen, the the Bank of Ceylon and People's Bank will also face a massive risk, as the CPC owes both these state banks a staggering US$ 3.6 billion.

Talking on obtaining a 3.6 billion US dollar credit line for fuel from Oman, the minister said that he does not know whether they will or not get this credit line, which would allow for a year of fuel supply at concessionary rates, the Minister said.

“If we get this credit line, we should be able to weather this storm. Otherwise, I will ask the Cabinet for relief," he said.