CPC allowed to obtain private bank assistance to open LoCs

COLOMBO (News 1st); The Ceylon Petroleum Corporation (CPC) has been allowed to obtain the assistance of private commercial banks to obtain the required dollars from state banks to open letters of credit for fuel purchases.

A Spokesperson for the Ministry of Energy stated that the permission was granted during a discussion held at the Ministry of Finance recently.

Accordingly, in the future, the Petroleum Corporation will be able to assist state banks in opening letters of credit for purchasing fuel, by purchasing dollars from private commercial banks at daily exchange rates, the Ministry spokesman said.

The Spokesperson said that the decision was taken owing to the fact that state banks did not have enough dollars to pay for fuel tankers in the face of the depreciation of the rupee against the dollar.