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Paris Club to give Sri Lanka financing assurances amid IMF debt talks - newsfirst.lk - China - city Beijing - India - Sri Lanka
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Paris Club to give Sri Lanka financing assurances amid IMF debt talks
(Reuters) – The Paris Club of creditor nations is ready to provide financing assurances to Sri Lanka, a key step needed to unlock a $2.9 billion bailout by the International Monetary Fund (IMF), two sources with direct knowledge of the matter told Reuters.The informal group of bilateral lenders is set to "soon" announce its support to the crisis-hit nation on a debt overhaul, said one of the people, who asked not to be named because talks are private.The Asian island nation, which is grappling with soaring inflation, a recession and currency depreciation, entered into a staff level agreement with the IMF last September.But it needs financing assurances from key bilateral lenders before the fund's executive board approves the programme.Sri Lanka's public debt stood at 122% of GDP, of which 70% is denominated in foreign currency, according to data in a country presentation to investors in November.China and India, both non-Paris Club members, are the top bilateral lenders. "Paris Club assurance is not reliant on China," said the source.Another source said the informal group is currently reaching out to other non-Paris Club besides China on financing assurances, but did not provide any further details.India previously committed to help ease the debt burden of neighbour Sri Lanka as part of the IMF programme, and China's Eximbank offered a two-year moratorium in a letter sent to the island nation in January.While the IMF has not yet provided any guidance on where the lender stands regarding China's assurances to Sri Lanka, a U.S.
CPC warns of financial issues as fuel is supplied on credit to CEB - newsfirst.lk - China - Sri Lanka - county Petroleum
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CPC warns of financial issues as fuel is supplied on credit to CEB
COLOMBO (News 1st) – Sri Lanka's Human Rights Commission has received a letter bearing the signature of the Managing Director of the Ceylon Petroleum Corporation stating that the present financial situation at the CPC could lead to a disruption of operations at the country's oil refinery.The letter noted that the CPC is heading towards a situation where future fuel imports will be in jeopardy as fuel is continuously provided on credit.The letter from the CPC Managing Director warns that this could lead to another fuel crisis in the country.The letter bearing the signature of the Managing Director of the Ceylon Petroleum Corporation states that it is paramount to ensure the continuous operation of the country's oil refinery when providing a continuous supply of fuel.It noted that though the CPC can provide furnace oil and naphtha to the Ceylon Electricity Board at a cost that is less than what is incurred when importing fuel, an issue is likely to arise in importing new stocks of crude oil and refined petroleum products as the existing stocks are provided on credit, despite the CEB still not settling its dues. The Managing Director of the Ceylon Petroleum Corporation states that several rounds of discussions revealed that the Ceylon Electricity Board does not have the funds to procure the fuel.It notes that despite the difficulties experienced, as the supply of electricity is a national requirement, fuel worth Rs.
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