Seven-year payback period requested – Kanchana

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Co-Cabinet Spokesman Kanchana Wijesekera said, the Government has requested a seven-year payback period, with a grace period, for US$ 500 million borrowed from India to import fuel.

The Exim Bank of India will be approached for the credit line.

He said a seven-year payback period with a grace period was requested, as opposed to the previous one-year payback period.

He said Sri Lanka had already received USD 500 million from the Exim Bank of India, as well as another USD 200 million from the State Bank of India.

“The USD 500 million credit line is an extension of the previous credit line. It is the same facility that Exim Bank previously provided. The State Bank of India extended a USD 200 million loan. The terms are currently being discussed. In general, they have agreed to extend the credit line. So, the technical committee meetings are currently underway. We have requested a seven-year payback period,” he said.

When asked if the money will be borrowed by the Ceylon Petroleum Corporation (CPC) or the Ministry, Wijesekera said the Ministry works with the Treasury in connection with the transaction.

“An account has been set up to collect the LKR received from the sale of fuel obtained by the Indian credit line facility. This LKR amount will be handed over to the Treasury. The Central Bank will facilitate the currency conversion,” he explained.

By Thameenah Razeek