Sri Lanka to purchase four fuel shipments from India on cash payment terms | Sri Lanka News

  • Diesel shipment will come first
  • It will take a week for it to materialise

In a step close to integration with India in energy security, Sri Lanka has sought to purchase four shipments of fuel – 40,000 tonnes each- from India on cash payment terms, Daily Mirror learns.

India is a bulk purchaser of fuel from the global market with attractive discounts. There is a proposal in the road map worked out by the Sri Lankan envoy to New Delhi Milinda Moragoda for the development of bilateral relations to tie up with India to buy fuel from the world market together, to benefit from the same discounted rates. Foreign Affairs Minister Prof. G.L. Peiris also proposed the idea during a meeting in recent times.

According to well informed sources, Sri Lanka has now sought to purchase four shipments of fuel from India instead of on credit. Initially, a shipment of diesel will be dispatched. Afterwards, petrol will be sent depending on the requirements. However, it will take at least one more week for the purchase to materialise.

Already, Sri Lanka has bought US $ 700 million Indian credits to import fuel. The latest proposal for cash payment transaction comes in the wake of the government seeking another credit line of US $ 500 million.

Daily Mirror learns that the next credit line is also in the process. Sri Lanka currently faces uncertainty over the next shipment of fuel. (Kelum Bandara)

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