India to ask for collateral to extend credit line for oil

By Shiran Ranasinghe

The Export-Import Bank of India (EXIM Bank) would ask Sri Lanka for a collateral to ensure the future supply of oil, a senior CPC officer told The Island.

The officials said that during the past few months, India had provided Sri Lanka with fuel worth USD 700 million.

The last fuel ship under the current Indian credit line arrived in Colombo yesterday with 40,000 tonnes of diesel.

The Sri Lankan government is trying to secure another Indian credit line worth USD 500 million.

Although the discussions are at the final stage, the Indians might ask for collateral given the deteriorating economic situation in Sri Lanka, the CPC official said.

Meanwhile, the Ministry of Power and Energy is taking steps to secure a ship carrying 40,000 tonnes of petrol to arrive in Colombo Port soon.

A CPC official told The Island that several ships carrying fuel had already arrived in Sri Lankan territorial waters.

“We are buying fuel under a new mechanism, which will apply to the shipment of petrol arriving on 19 June, ” he said. The Ministry had informed gas station owners that petrol would be released at least on a few days a week after the arrival of that shipment, he added.