The Ceylon Petroleum Corporation (CPC) made a net profit of Rs. 29.2 billion in the first six months of 2026, helped by a Rs. 41 billion Treasury subsidy, the Finance Ministry said in its Mid-Year Fiscal Position Report 2026.
The net profit was 71.8 percent higher than the Rs. 17 billion booked in the same period of 2025. Gross profit moved the other way, falling 72.9 percent to Rs. 8.9 billion from Rs. 32.8 billion.
The ministry said operating profit rose to Rs. 23.9 billion from Rs. 11.1 billion, mainly because of the subsidy paid between April and June. CPC also recorded an unrealised foreign exchange gain of Rs. 7.2 billion, up from Rs. 3.5 billion a year earlier.
Net sales revenue grew 40.4 percent to Rs. 576.6 billion, which the ministry linked to higher domestic fuel prices after disruptions to global energy supplies. Cost of sales rose 50.2 percent to Rs. 567.6 billion from Rs. 377.9 billion.
CPC’s petroleum import bill climbed 73.8 percent to US$1.74 billion, against about US$1 billion in January to June 2025.
Background
The Government paid about Rs. 57 billion in fuel subsidies to participants in the domestic petroleum market in the second quarter of 2026. Of that sum, Rs. 41 billion went to CPC, the Finance Ministry said.
The ministry said the support was introduced to limit the effect of rising global petroleum prices after the Middle East conflict escalated. It described the aim as stabilising the domestic petroleum industry and reducing the impact on consumers and the wider economy.
The figures come from the ministry’s mid-year fiscal report, which reviews public finances for the first half of the year. They show how much of CPC’s result depended on public money: operating profit more than doubled, while gross profit fell by almost three quarters.
What it means
The subsidy was paid from public funds, so it forms part of the Government’s spending for the year. The report shows that fuel costs rose sharply for the state-owned importer, with the import bill up by nearly three quarters in dollar terms.
For motorists, transport operators and businesses, the figures show that higher domestic fuel prices contributed to CPC’s revenue growth in the period. Fuel prices in Sri Lanka continue to be set by the Government and CPC, and readers can find current prices on the CPC website.
