VIDEO: Hedging losses will leave a black stain on SL
July 14, 2011 04:27 pm
The losses made through the hedging deals will have to be paid by the public and the government while it will leave a black stain on the country’s reputation when considering future international investments, UNP MP Harsha de Silva stated.
The Ceylon Petroleum Corporation (CPC) was ordered to pay a sum of US $162 million to Standard Chartered Bank by a court in the UK.
MP de Silva stated that this situation will leave a long lasting black mark on the country while future investors will be hesitant to invest in the country.
He added that the hedging deals were a form of gambling that was done with public funds and now that the gamble has not paid off the public will have to bear the losses.
Furthermore he said that this situation will only result in the hiking of domestic fuel prices.
