2007 - Ceylon Petroleum Corporation

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commence in 2008. Our intent is to
provide value and generate sufficient
margins to enable us to cross-subsidise
our mainstream customers.
We have also planned to revitalise
our agrochemical business by the
introduction of more farmer friendly
pricing scheme for our products and
opening a number of CPC owned outlets
in the farming areas
New CPC Head Office Building
In the year under review, the Corporation
commenced construction of a new
state-of-the-art Head Office building at
Dematagoda at a cost of Rs. 1.5 Bn. The
project is planned for completion in 2010.
Corporate Governance
In our efforts to enhance corporate
governance, we have empowered our
internal audit function with professionals
and experts in finance and the oil
industry. These experts are currently
working to develop stronger internal
controls and help us increase operational
and financial transparency.
An Audit Committee, which consists of
three Board Members, has been appointed
to bring our corporate governance in par
with global standards.
A new Transfer Committee has also
been set up to look into personnel issues
pertaining to staff transfers and make
appropriate suggestions to management.
Corporate Social Responsibility
Corporate Social Responsibility is
our main focus of attention and all
attempts are made to meet the needs
of the entire nation at the least possible
cost to the consumer.
As mentioned above, fuel supplies are
made even to ‘uncleared areas’ in the
Northern and Eastern Provinces and also
guarantee uninterrupted fuel supplies to
Government institutions at any cost.
We are currently in the planning process
to enter a joint venture with a foreign
technical provider that will convert
garbage polythene to bunkering fuel.
The raw material will be unprocessable
garbage polythene which is a serious
environmental threat. The project is
proposed to commence in 2009.
Looking Ahead to 2008
As mentioned previously, we eagerly
look forward to the implementation
of the refinery expansion project.
We are also in the process of preparing a
10-year plan in line with the national
budget strategy.
It is very likely that fuel oil market in
Sri Lanka will be much competitive
in the coming year. However, with
our committed and experienced
management team, with clear market
leadership and a knowledgeable and
experienced workforce, there is every
reason to believe that the coming year
too will be yet another outstanding year
for CPC.
Acknowledgements
I take this opportunity to convey my
gratitude to the Board of Directors for
an excellent job done and for valuable
support extended to me throughout the
past year. I also thank our corporate and
executive management, staff, customers
and all stakeholders for their dedication,
loyalty and support in making the year
under review an outstanding one.
I further extend my appreciation to the
Government; the Minister of Petroleum
and Petroleum Resources Development,
the Hon. Minister A.H.M. Fowzie; the
Secretary of the Ministry of Petroleum
and Petroleum Resources Development
and his officials, the Secretary to the
Treasury, Dr. P.B. Jayasundara, and his
officials; and to Mr. Ajith Nivard Cabraal,
the Governor of the Central Bank of
Sri Lanka and his officials for their
invaluable guidance and support.
Ashantha L.F. De Mel
Chairman & Managing Director
30th September 2008
ANNUAL REPORT 2007 | CEYLON PETROLEUM CORPORATION