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Cabinet nod for US $ 3.6bn Oman credit line to finance oil procurements

7 October 2021 05:13 am - 9     - {{hitsCtrl.values.hits}}

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  • But says no decision reached on offering Oman an oil exploration block

The Cabinet of Ministers this week approved a proposal to enter into a loan agreement for a US $ 3.6 billion credit line with the Government of Oman to finance petroleum procurement for a period of one year.


Responding to a media query at the weekly Cabinet press briefing yesterday, Cabinet Co-Spokesperson and Plantation Minister Dr. Ramesh Pathirana revealed that the two parties reached an agreement on the US $ 3.6 billion loan in principle. 


However, he noted a request made by the Omani government to allocate them with an offshore block in the Mannar basin to explore oil deposit, in lieu of the interest payments of the credit, has not been approved so far. 
“It’s only the loan agreement that we have reached for US $ 3.6 billion, over a period of one year for the procurement of oil for Sri Lanka. We have not taken a decision as such. So, it will be only interest payments,” 
he said.

 Meanwhile, several media reports last month said Ceylon Petroleum Corporation (CPC) had decided to borrow US $ 2.5 billion from the international market on a long-term basis to restructure its debt owed to two state banks.
CPC had around US $ 3 billion in outstanding loans up to July this year. 

 

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  Comments - 9

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  • Kikuzaru Thursday, 07 October 2021 09:24 AM

    Another reckless move to offer offshore block in lieu of interest. What are the replacement terms for this loan and the interest of no offshore blocks are offered. Sri Lanka is in a real shit hole. If you guy can not mange it just get out.

    Lankaputra Jinadasa Thursday, 07 October 2021 09:33 AM

    OMG! Half will be reinvested in the US, EUROPE, ....

    Ajith77 Thursday, 07 October 2021 10:25 AM

    Liberalize petroleum sector and let companies to finance imports. We cannot bear CPC losses any more

    O M I ! Thursday, 07 October 2021 10:26 AM

    Loans ,loans, loans and loans. Where is m.wansa these days? We don’t hear from him. Has he been asked to shut up to give a place to Namal baby ?

    sam Thursday, 07 October 2021 10:43 AM

    More and more loans, when will this end

    Ram Thursday, 07 October 2021 12:02 PM

    We cannot repay this. Another part of the country can be sold to settle this. Good part of this money will end where? we all know where

    Priyantha778 Thursday, 07 October 2021 12:11 PM

    why keep CPC white elephant ? earn more commissions ?

    Dee Thursday, 07 October 2021 02:18 PM

    Just float the fuel selling prices. Identify those who needs subsidy and compensate them. No point in trying to make water flow upwards!

    Colin Friday, 08 October 2021 12:05 AM

    We welcome this Muslim country coming to our rescue and preventing the motorists from joining the queue s


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