Sept 10, Colombo: Sri Lanka’s parliamentary Committee on Public Enterprises (COPE) has received a report from the Public Enterprises Department of the Treasury on the Ceylon Petroleum Corporation (CPC).
The report received by COPE has stated that several factors have led to the deterioration of the performance of the CPC negating the effect of government assistance.
The report which has noted the performance highlights for the year 2008, 2009, 2010 and current performance states that the lack of a clear strategy to operate in the market, low productive use of employees, weak financial and operational management and non-optimal utilization of resources have contributed significantly to the deterioration of the CPC.
The report has noted that there are operational inefficiencies due to the lack of proper human resource policy resulting in the failure of the existing staff to meet the demands of the CPC.
Another major issue highlighted is the lack of a long-term plan to maintain and invest assets. The Ceylon Petroleum Storage Terminal Limited (CPSTL) that provides storage and terminal facilities to the CPC is not properly managed and the CPSTL passes on its inefficiencies to the CPC, the report states.
It has been recommended the development of strategies to achieve the set objectives of the Corporate Plan 2010-2014 and implementation of activities set down in the Action Plan 2011 to bring the situation into an affordable condition.
Another recommendation made by the Public Enterprises Department is to expedite the upgrading of the Sapugaskanda oil refinery in order to enable CPC to become a competitive force in the region in the export of refined products.