Begging Success

Giving a brief respite to the cash-strapped government, Malaysian State Oil Company Petronas has agreed to defer crude oil payments for up to six months to help Sri Lanka manage the exchange rate crisis. Giving a brief respite to the cash-strapped government, Malaysian State Oil Company Petronas has agreed to defer crude oil payments for up to six months to help Sri Lanka manage the exchange rate crisis. The facility comes on the back of a US$ 150 million credit line already secured from India for petroleum imports.

Malaysian crude imports makes up one-third of the total imports of the country

“When I was n Malaysia recently I took up the matter with the Deputy Prime Minister of Malaysia Datuk Najib. Later the President also wrote to the Prime Minister of Malaysia. I am told that the Malaysian government is going to respond positively,” Finance Sarath Amunugama told LBR.

Government said last week admitted it was facing an exchange rate crisis and was raising import levies to curb imports and encourage domestic production.

The rupee has depreciated by over 8 percent this year due to high oil prices and political uncertainty according to traders.

The rupee depreciation also triggered a