CPC to obtain USD 2.5B loan

Rebecca Pavey | Published: 9:40 AM Sep 14 2021
Local CPC to obtain USD 2.5B loan

The Ceylon Petroleum Corporation (CPC) has decided to obtain a loan worth USD 2.5 billion from the international market, in a bid to overcome the financial crisis currently faced by CPC.

This is allegedly the largest loan Sri Lanka has attempted to secure.

CPC Chairman Attorney at Law Sumith Wijesinghe said that several loans have been obtained from the Bank of Ceylon and People's Bank thus far, amounting to debt of nearly USD 2.5 - USD 3 billion, with comparatively high interest rates.

The decision was reached after much contemplation, Wijesinghe noted, adding that their requests have been met with a favourable response.

"We contemplated obtaining loans at lower interest rates to fund the petroleum sector of the country. We have received a favourable response thus far and believe that we can obtain loans from the relevant corporations", he said in this regard.

Several CPC trade unions have, however, condemned the decision, stating that obtaining such a loan will lead CPC into an irrecoverable debt crisis.

When questioned on the matter, former State Minister of Money & Capital Market and State Enterprise Reforms, Ajith Nivard Cabraal noted that he will look into the matter once he assumes duties as the Governor of the Central Bank of Sri Lanka.

Cabraal is due to assume duties as the 16th Governor of CBSL tomorrow (15).

Rebecca Pavey | Published: 9:40 AM Sep 14 2021

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