Credit line

$3.6bn fuel line of credit in Oman dropped with conditions – Reuters

The government has decided not to proceed with the proposed $3.6 billion fuel line of credit with Oman due to certain conditions of the agreement.

“While we discussed the terms of the deal at length, there were some concerns related to the terms.

Therefore, at this stage, Oman’s proposal has become an inactive proposal,” co-cabinet spokesman and media minister Dullas Alahapperuma said during the Cabinet’s weekly press conference in Colombo yesterday. .
At the beginning of October, the Council of Ministers approved a proposal to conclude a loan agreement for a $3.6 billion line of credit with the Sultanate of Oman to finance the purchase of oil for a period of
one year.

The proposed line of credit was to be repaid in 20 years with a grace period of five years.

Although the two countries agreed on the principle of the line of credit, the Sri Lankan government had not approved the condition posed by Oman to allocate them an offshore block in the Mannar Basin to explore for oil. , in lieu of line of credit interest payments. . Sri Lanka recently secured a US$500 million fuel line of credit from India.