Sri Lankan government hopeful of seeing a favorable end to hedging case

The Sri Lankan government has said today that it was hopeful of seeing a favorable settlement in the controversial oil hedging case that is currently under litigation in Singapore.

Chief Government Whip, Minister Dinesh Gunawardena told parliament that although he could not reveal details about it as the case was pending before court, it was likely to be resolved in a manner that was advantageous to Sri Lanka.

Gunawardena made this statement in response to a question raised by opposition UNP MP Ravi Karunanayaka.

Karunanayaka however said that details of the case could be informed to parliament as it was pending before an international court. The Minister declined saying he was bound by international jurisdiction.

Three foreign banks had invoked arbitration demanding US$ 261 million from the Ceylon Petroleum Corporation (CPC).

Sri Lanka Supreme Court in November 2008 ruled that the contract entered between the three foreign banks and the CPC was ultra-vires as it was against the instructions of the Central Bank.