📈 CoPF Chair Questions CPC’s Forex Strategy Amid Market Volatility Fears

• Key Concern: Parliament’s Committee on Public Finance (CoPF) Chairman Dr. Harsha de Silva questioned the Ceylon Petroleum Corporation (CPC) over its foreign exchange management, warning that large, unscheduled dollar purchases could disrupt market stability. This follows a reported US$ 46 Mn single-day purchase on 29 May. • Import Bill Surge: CPC's monthly fuel import bill ballooned from an average of ~US$ 100 Mn before April to over US$ 500 Mn, driven by a sudden escalation in global oil prices. • New Strategy: To mitigate market disruption, CPC officials stated they now follow a planned approach. Instead of concentrated purchases, the Corporation plans to spread future acquisitions over multiple days, targeting a daily purchase of US$ 11 Mn. • Procurement Structure: The CPC currently procures its foreign currency requirements through auctions across nine banks to support national fuel import requirements.