Result of the Rajapakshe Visit to delhi !
CPC is under loss while LIOC is reaping all the benefits !
The Indian Oil Corp. unit aims to add 35 to 40 fuel stations annually over four years to cater to an expected rise in diesel and gasoline demand after the government declared victory over rebels of the Liberation Tigers of Tamil Eelam, Lanka IOC Managing Director Suresh Kumar said in an interview
The Indian company s expansion will go ahead as it expects to make a profit this year after hedging and slower currency depreciation help to offset losses from selling fuels below cost.
Our short-term scenario won t cloud my thinking on expansion, Kumar said in his Colombo-based office yesterday. Now that the war is over, the focus is on economic prosperity and growth.
Lanka IOC has risen 15 percent this year on the Colombo Stock Exchange, compared with a 62 percent gain in the benchmark Colombo All-Share Index.
Lanka IOC, which reported a loss of 1.24 billion rupees ($11 million) in the year to March 31, will fund the expansion through offshore borrowings and loans from development banks in Sri Lanka.
This year, we definitely won t be at a loss, Kumar said, amid earnings from hedging and a slower depreciation of the Sri Lankan rupee. Dollars have been made available at a cheaper cost and will facilitate smooth operations and supplies.
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