Sri Lanka’s plan to secure $3.6 bln loan from Oman collapses

Sri Lanka’s plan to obtain a US$ 3.6 billion loan facility from Oman has been shattered following the collapse in negotiations between the Finance Ministry and Omani authorities, cabinet spokesman and media minister Dulles Alahapperuma has revealed.

The negotiations had commenced on a decision taken by the cabinet to seek this facility and it has ended in a deadlock, he said adding that some condition put forward by the Omani authorities were unacceptable for Sri Lanka.

These developments were exclusively reported in Business Times on November 7, 2021 in an article under the heading “Oman’s US$ 3.6 billion loan to CPC hangs on the balance”.         

In that news item, Business Times highlighted that Sri Lanka’s decision to reject the request of allocating an offshore block in the Mannar Basin for oil exploration instead of the interest payments for a $3.6 billion credit by the Omani government has put this loan facility on the balance.