Sri Lanka Seeks USD 500 Million Loan From India To Purchase Crude Oil: Report
In an alarming voice, Udaya Gammanpila, Minister of Energy of Sri Lanka, recently said that the current availability of fuel in the country can be ensured only until January 2022.
New Delhi: Amidst a severe foreign exchange crisis, Sri Lanka has sought the Indian Government to give them a credit line worth USD 500 million, so that it can purchase the crude oil.
In an alarming voice, Udaya Gammanpila, Minister of Energy of Sri Lanka, recently said that the current availability of fuel in the country can be ensured only until January 2022.
The Chairman of the state-run Ceylon Petroleum Corporation (CPC) Sumith Wijesinghe informed the local news website newsfirst.lk, that only with the intervention of the Indian High Commission in Sri Lanks, the island country will be able to secure the loan from the Indian government. As per the PTI report, CPC currently owes USD 3.3 billion to the major government banks i.e. Bank of Ceylon and People's Bank.
"We are currently engaged with the Indian High Commission here to obtain the facility (USD 500 million credit line) under the India-Sri Lanka economic partnership arrangement," Sumith Wijesinghe was quoted by newsfirst.ik in its report.
He further said that the loan will be utilized in purchasing petrol and diesel requirements.
Both Indian and Sri Lanka Energy Secretaries are expected to sign an agreement for the loan in due course, the Finance Secretary SR Attygalle told the newsfirst.ik.
According to the PTI report, the price hike within the worldwide oil expenses has compelled Sri Lanka to spend extra money on oil imports this year. The country's oil invoice has jumped 41.5 per cent to USD 2 billion within the first seven months of this year, in comparison to the closing year.
(With inputs from PTI)
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