The Cabinet has granted approval for a proposal to enter into a loan agreement with the Government of Oman to finance petroleum procurement.
As per the proposal, the loan agreement is for a US $ 3.6 billion credit line and for a period of one year.
Cabinet co-spokesman Minister Ramesh Pathirana told reporters yesterday that the Governments of Sri Lanka and Oman have reached an agreement on principle.
He further said the Government has not approved the request by the Omani Government to allocate an offshore block in the Mannar basin to explore oil deposits, in lieu of the interest payments of the credit.
Stating that approval has only been granted for the loan agreement of US $ 3.6 billion, over a period of one year for the procurement of oil for Sri Lanka, Minister Pathirana said it will be under interest payments. (NewsWire)