December 7, 2013
A London court ordered the payment of nearly $162 million plus interest from the Ceylon Petroleum Corporation (CPC) to Standard Chartered Bank for non-payment of dues connected with the hedging of oil prices.
The CPC was involved in hedging during the time when international oil prices hit a record level and subsequently crashed.
Following the court order, the CPC received permission to appeal against the commercial court order stating that it was disappointed over the judgment and that any application by the Standard Chartered Bank to make such permission conditional would be opposed by the CPC.
Furthermore, the Attorney Generalís Department was assigned to handle the legal matters in connection with the appeal.
Meanwhile, Opposition Parties have stated that these hedging deals will leave a long-lasting black stain on Sri Lanka with regards to future international investments.
UNP MP Harsha de Silva stated recently that the burden of the losses made by these hedging deals will be placed on the public as he predicted a rise in domestic fuel prices to soften the financial blow caused by the ordered payments.
He further stated that the government was gambling with public money in this case which will have long-term effects on the countryís image when considering foreign investors.
The Petroleum Minister Susil Premajayantha has stated that the case will be handled entirely by Sri Lankaís Attorney Generalís Department and that it will take future steps as deemed necessary.
What in your opinion should the government and the CPC do next? Have your say.
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