The Sundaytimes Sri Lanka

SriLankan settles US$ 100 mln part loan to Ceylon Petroleum Corporation


SriLankan Airlines has settled US$100 million as part dues to Ceylon Petroleum Corporation (CPC) last week and is negotiating the balance payment, officials said. “We’re negotiating with the CPC on the repayment in terms of pricing and credit terms and will arrive at a settlement by mid next month,” Nishantha Wickremasinghe, Chairman SriLankan Airlines told the Business Times. He said that pricing determination will be referencing the global fuel price index and this together with the credit terms is being discussed pertaining to the repayment plan with the CPC.

He said that the discussions will also be on how much the outstanding balance is to CPC as both entities still haven’t come to an agreement on this amount. “SriLankan has had discussions with regards to this matter on Wednesday and the next meeting will be in two weeks’ time,” he added. SriLankan Airlines secured a US$175 million loan through an Islamic structured facility from five Gulf banks last month.
Mr. Wickremasinghe said that this loan was used to settle the CPC part payment, $40 million paid to the Bank of Ceylon (BOC) over a previous loan and the rest used as working capital.

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