Hedge Deal

Jan 27, 2009 (LBO) – Sri Lanka’s Supreme Court Tuesday terminated proceedings in a case against oil hedges by the state-owned refiner, Ceylon Petroleum Corporation, with all interim orders that suspended payments to banks ceasing to be operative. The Supreme Court said it was terminating proceedings as the government did not comply with its orders to bring down fuel retail prices according to a pricing formula.

Lawyers representing the government argued in court that the government should be given more time to consider the order and submit a fresh pricing formula

But the court rejected the argument, saying the government should first comply with order and then say if it has problems with it.