Harsha questions CPC’s forex planning

Friday, 19 June 2026 00:21 - - {{hitsCtrl.values.hits}}

Parliament’s Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva has questioned whether the Ceylon Petroleum Corporation (CPC) was managing its foreign exchange requirements efficiently, warning that unscheduled large purchases of dollars could contribute to volatility in the foreign exchange market.

Referring to a reported $ 46 million purchased in a single day on 29 May, Dr. de Silva argued that large, concentrated demand for foreign currency could disrupt market stability and affect other participants.

He urged CPC officials to adopt a smoother purchasing strategy supported by stronger treasury management practices rather than making sizeable one-off purchases.

CPC officials told the Committee that the organisation now follows a planned approach to foreign currency purchases and intends to spread acquisitions over multiple days to avoid market disruptions. Officials said the Corporation had prepared purchasing plans for future fuel import requirements.

They explained that sudden escalation in global oil prices had caused initial difficulties. Before April, the monthly fuel import bill averaged around $ 100 million, before ballooning to over $ 500 million.

The CPC purchases its foreign currency requirements from nine banks via auctions and plans to purchase $ 11 million daily going forward.