Arbitrator voids SL oil hedge deal

1 August 2011 12:00 pm - 9 - {{hitsCtrl.values.hits}}

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A Singapore-based international arbitrator today voided an oil hedging deal between Sri Lanka's state oil company and Citibank, rejecting the bank's demand for $192 million plus interest in payments it said it was owed, sources said.

"The decision has said that the entirety of the transaction is not right and Citibank's claim has been dismissed," one of five sources involved with the case at the International Centre for Settlement of Investment Disputes told Reuters.

Four other sources, who were involved on both sides of the case, confirmed the ruling. All spoke on condition of anonymity.

Last Month, a London court found Ceypetco owed nearly $162 million plus interest to Standard Chartered Bank for non-payment of hedging dues, after oil prices collapsed from the global highs in place when the agreement was signed. (REUTERS)

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Comments - 9

Sup Monday, 01 August 2011 02:15 PM

good news.......

Bumba Monday, 01 August 2011 02:26 PM

Great news. Can get way without paying after gambling.

palithaeka Monday, 01 August 2011 04:44 PM

What ever said in the agreement they are bias. Thanks for the justice

Upul Monday, 01 August 2011 10:24 PM

What formaer CJ has to say now. He advised to honour this agreement

stewart Tuesday, 02 August 2011 02:36 AM

Congratulations Sri Lanka, but will you get any more loans or credit from Citibank?

Shamil Mansoor Tuesday, 02 August 2011 02:53 AM

I have to say, very well put.

Fayad Tuesday, 02 August 2011 03:01 AM

Why so negative ??? towards mother lanka
nobody in the goverment will pay only the poor people have to bear cost.

Gura Tuesday, 02 August 2011 09:35 AM

dont say arbitrator bribed

Boleh Tuesday, 02 August 2011 12:52 PM

Well done. Banks can't take poor countries for a ride. Maybe some top made genuine mistakes. But evidence is clear

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Arbitrator voids SL oil hedge deal

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