Sri Lanka has sought a USD 500 million credit score line from India to pay for its crude oil purchases amid a extreme international trade disaster within the island nation, Indian media reported as we speak.
The transfer got here few days after power minister Udaya Gammanpila warned that the present availability of gas within the island nation might be assured solely until subsequent January.
The state-run Ceylon Petroleum Company (CPC) owes practically USD 3.3 billion to the 2 foremost authorities banks — Financial institution of Ceylon and Individuals’s Financial institution. The state oil distributors import crude from the Center East and refined merchandise from different areas, together with Singapore.
“We’re at the moment engaged with the Indian Excessive Fee right here to acquire the power (USD 500 credit score line) beneath the India-Sri Lanka financial partnership association,’’ CPC Chairman Smith Wijesinghe was quoted as saying.
He mentioned the power can be utilized for buying petrol and diesel necessities.
The power secretaries of each India and Sri Lanka are anticipated to signal an settlement for the mortgage quickly, the report quoted Finance Secretary S R Attygalle as saying.
The federal government has placed on maintain the anticipated retail worth hike of gas regardless of the final week’s improve in cooking fuel and different necessities.