Financial Times

Amunugama, Dhanapala to Vienna in September
Finance Minister Sarath Amunugama and Jayantha Dhanapala, veteran diplomat and currently head of the government's Peace Secretariat, are flying to Vienna in the first week of September for negotiations with the OPEC Fund for a special loan facility.

Informed sources said the duo would discuss special loan arrangements with OPEC Fund officials aimed at easing pressure on rising oil prices. Officials from the Sri Lankan mission in Vienna have been asked to discuss lending mechanisms with OPEC officials and lay the groundwork for the upcoming negotiations.

Dhanapala, a retired UN Under Secretary General and Sri Lanka's best-known diplomat, has been co-opted to the negotiating team because of his wide international contacts. The OPEC Development Fund provides concessionary financial assistance through loans for development projects and programmes, and for balance of payments support.

It also provides grants in addition to participating in the financing of private sector activities in developing countries. All developing countries are eligible for Fund assistance with the least developed countries accorded higher priority. Sources said the government was seeking concessional loans to mitigate high oil prices which Cabinet spokesman Mangala Samaraweera said couldn't be controlled or reduced by the government.

The government spends $900 million a year on crude oil imports at $32 per barrel and an extra $250-350 million when it is at $40 per barrel, which is around current levels.

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