Purchase of petroleum products Cabinet decides to obtain a series of short term loans

• Short-term loan of US$ 500 million from Export Import bank of India
• Loan facility of US$ 200 million from State bank of India
• Sapugaskanda Oil Refinery to resume production shortly

By Sandun A. Jayasekera

The cabinet that met on Monday has decided to obtain a series of short-term loans for the purchase of petroleum products for the rest of the year, under the assistance of the Indian Export Import Bank of India.   

Cabinet spokesman, Transport, Highways and Mass Media Minister Bandula Gunawardana told the weekly cabinet news briefing last morning that action had already been taken to obtain a short-term loan facility of US$ 500 million with the assistance of the Export Import bank of India as well as another loan facility of US$ 200 million under the assistance of the State bank of India in order to purchase petroleum products required by the country.  

The cabinet also granted approval for a proposal submitted by the Minister of Power and Energy to obtain a series of short-term loan facilities worth another US$ 500 million with the assistance of the Export Import bank of  India in order to purchase petroleum products for settling the foreign exchange shortage existing at the moment to import fuel.  

He said the Sapugaskanda Oil Refinery would resume production shortly as a crude oil tanker has arrived at the Port of Colombo and the demurrage to the tune of US$ 75 million has been paid to unload crude oil. 

• Demurrage  of US$ 75 million paid to unload crude oil