State-run Ceylon Petroleum Corporation owes 730 million US dollars on letter of credit for past oil purchases and a petrol ship in Sri Lanka’s waters will also not unload until a previous shipment is paid, Energy Minister Kanchana Wijesekeera said.
“The way we buy oil is that we have to first make a deposit. It can be done in rupees. We can deposit 20 or 30 percent, and the LC is paid in 90 or 180 days,” Wijesekera told parliament.
“We have 730 million dollars of payments on past payments on which LCs are maturing. This is very difficult.”