Sri Lanka’s CPC Negotiates with Goldman Sachs for $1bn Long Tterm Financing for Petroleum

10th January 2012, www.news360.lk, By Prasanna C Rodrigo

Sri Lanka has started negotiations with Global Investment Bank Goldman Sachs to obtain a US$ 1 billion loan facility to help finance the country’s state run petroleum utility CPC.

According to highly credible government sources, a delegation from the Goldman Sachs has arrived in the country during this week and held a round of discussions with the Sri Lankan Government.

The delegation has met officials of both the Central Bank and the Ministry of Petroleum and Petroleum Resources Development.

They have also held a meeting with the country’s Petroleum Minister Susil Premajayantha.

The meetings have taken place yesterday.

“The deal will go through within weeks or months” said an official who is familiar with the workings of the deal.

Another Official who has taken part in the meeting said that the terms and conditions of the financing facility is yet to be decided.

Governor of the Central Bank, Ajith Nivard Cabraal, last week announced that Sri Lanka will seek US$ 1 billion during this year as a means of a special long term financing for Petroleum.

The money, once received is expected to be used for petroleum payments.

Sri Lanka’s Petroleum Import bill during the year 2011 is estimated to have reached a sum of US$ 4.5 billion, compared to US$ 3 billion spent on 2010.