Sri Lanka has to pay up to Rs. 50 billion for hedging deal, opposition legislator says

July 22, Colombo: A legislator of Sri Lankas main opposition United National Party (UNP) says the country might have to pay a large number of monies for the hedging deal if two other international banks involved in the deal also file legal action against Ceylon Petroleum Corporation (CPC).

UNP parliamentarian Dayasiri Jayasekera told a press conference today that the government would have to pay up to Rs. 50 billion if the Citi Bank and Deutsche Bank file legal action.

He said the government has already paid Rs. 18 billion for the hedging deal.

A London court last week ruled that Sri Lanka’s petroleum authority Ceylon Petroleum Corporation (CPC) owes nearly US$ 162 million plus interest to Standard Chartered Bank for non-payment of dues resulted from a failed hedging deal.

According to Jayasekera, the government has to pay a further US$ 2 million for consultation fees for the court case.

He said the UNP has organized a protest in Panduwasnuwara in Hettipola on August 6th against the government’s shortsighted actions over the hedging deal.

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