Central Bank refuses US Dollars to Ceylon Petroleum Corporation without rupees

Triggering further uncertainty on a possible fuel shortage in the country, the Central Bank said it could not release foreign exchange to the Ceylon Petroleum Corporation (CPC) without getting the rupee component for it.

A ship with a consignment of diesel has been berthed at the port. The CPC has been unable to get it unloaded due to lack of US dollars to pay for it.

Earlier, Energy Minister Udaya Gammanpila said a fuel shortage could not be avoided unless US dollars were released for the payment of it.

Asked about the situation, Central Bank Governor Ajith Nivard Cabraal said the banks would not release US dollars without rupees in keeping with the exchange value. He said there is a single borrower limit and it applies to the CPC.

(Source: Daily Mirror – By Kelum Bandara)

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