The Central Bank of Sri Lanka (CBSL) has called for a pricing mechanism for petroleum.
The Ministry of Finance currently administers the price control of petroleum in Sri Lanka.
The Ministry last granted permission for state-run Ceylon Petroleum Corporation to raise prices on 12th June 2021.
The CBSL said the recent rising trend of global prices of crude oil forecasts that this trend is likely to continue during the remainder of the year.
Issuing an update on recent economic developments ahead of the budget 2022 which will be presented in Parliament today (12), the bank highlighted that this revision is likely to be inadequate in the period ahead.
“A suitable cost-reflective pricing mechanism is essential for the financial viability of the CPC and thereby the stability of the banking sector. Such a mechanism can also improve transparency and thereby improve the general public’s acceptance of much needed regular price revisions in relation to these imported products,” the CBSL pointed out.
The bank further said a pre-determined formula can also pave the way for a quick pass-through of the benefits of any price declines in global markets. (NewsWire)