During the first four months of 2022 the cumulative loss of State-Owned Enterprises (SOEs) amounted to Rs 860 billion. This figure outweighs the annual loss of SOEs in 2021 and the profit of SOEs in 2020.
The top three loss-making institutions were: (1) Ceylon Petroleum Corporation (CPC) (2) Sri Lankan Airlines and the (3) Ceylon Electricity Board.
The loss was driven by the exchange rate loss due to the depreciation of the currency by 58% in the first four months of 2022. Certain SOE’s with higher level of exposure to foreign debt were more vulnerable to the depreciation of the currency. The CPC was one such SOE that was severely impacted by the exchange rate. The CPC’s losses in the first four months of 2022 amounted to Rs 628 billion which is 73% of the total SOE loss. The foreign exchange loss of the CPC amounted to 550 billion , which is 21 times higher than the same figure of Rs 26 billion reported in the corresponding period in 2021.