As the country awaits the outcome of the latest round of the controversial oil hedging arbitration case which concluded in Singapore earlier this month, the Sri Lankan Government says that it expects a favourable ruling as a 14-member Sri Lankan team headed by Attorney General Mohan Peiris defended the country’s position strongly before the arbitration panel, Petroleum Minister Susil Premajayantha told the Business Times.
He said submissions were made on behalf of the government and the Ceylon Petroleum Corporation (CPC) with former Petroleum Minister A.H.M.Fowzie, former CPC chairman Asantha De Mel, and several officials giving evidence before the panel. Former Attorney General Shibly Aziz, presented a moderate stance of the issue appearing as an independent witness. He expressed the belief that the case will be settled in an advantageous manner for Sri Lanka.
The issue of sovereign default didn’t come up in arbitration proceedings of the CPC- Citi Bank oil hedging case which ended in Singapore on November 13 although the foreign bank did try hard to link it, informed sources said. Such a default could shake investor sentiment in Sri Lanka as a whole, with the looming foreign investment efforts to rebuild the country, the sources said.
Citi Bank filed for compensation after losing money on the oil hedging deal after the CPC refused payment. Three foreign banks -- Deutsche, Standard Chartered Bank and Citi are suing the CPC for compensation.
Arbitration proceedings in the complaints made by the other two banks are due to begin in early 2011. |
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