SUNDAY OBSERVER Sunday Observer - Magazine
Sunday, 02 March 2003  
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CPC threatens to cut off Railways fuel

The Ceylon Petroleum Corporation (CPC) which last week threatened to stop supplying fuel to the Railways Department by the end of February, if the bills are not settled by the 28th, has now extended the deadline to March 31. The CPC threat, if carried out, would bring the train services to a complete halt, and leave several thousand daily commuters stranded.

The Railways, which has been obtaining fuel on a loan basis to keep the train services in operation, has a fuel bill of Rs. 375 million payable to the CPC.

CPC officials were not available for comment, but General Manager Railways, Priyal de Silva told the Sunday Observer that the February 28 deadline was extended after the mediation of the Ministry of Transport. He also said that the March 31 deadline meant that the Railways Department would have to settle a larger bill by the end of the month. He said that the bill, including the fuel cost for February, will now be Rs. 450 million.

However, Silva assured that the train services will not be interrupted, despite the CPC threat, and expressed hopes of the government settling the issue before long. -DW

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