SL to obtain USD 3.6B loan from Oman to buy oil

Rebecca Pavey | Published: 3:50 PM Oct 22 2021
Local SL to obtain USD 3.6B loan from Oman to buy oil

The Cabinet today (22) granted approval for obtaining a loan of USD 3.6 billion from Oman to purchase petroleum.

Minister of Energy Udaya Gammanpila noted that preparations of the agreements in this regard are currently underway.

Earlier this month, approval for a proposal to enter into a loan agreement with Oman to finance petroleum procurement was granted by the Cabinet.

Reportedly, Sri Lanka is to be given a five-year grace period and a repayment period spanning 20 years, while the USD 3.6 billion loan is expected to provide funds to purchase fuel for 12 months.

Gammanpila further noted that the recent panic-buying witnessed at several petrol sheds was a result of false threats being spread by the opposition.

"The Opposition and its unions have misled the community nearly five times about a potential petrol shortage. There is no reason for a petrol shortage. We have sufficient stocks of petrol", he said.

He assured that there are no plans by CEYPETCO to increase its prices, despite Lanka IOC having increased its fuel prices.

Explaining the measures taken by the Ministry to prevent a shortage, Gammanpila stated that Sri Lanka also sought a $500 million credit line from India to pay for its crude oil purchases.

Rebecca Pavey | Published: 3:50 PM Oct 22 2021

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