Settlement

July 1, 2013 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation had settled a claim over an oil derivative for 60 million US dollars, a media report said. State-run CPC refused to pay on a complex options position which went against it after oil prices collapsed in later 2008 as the US monetary system de-leveraged, amid claims of corruption.

CPC subsequently lost a case in a UK court, which awarded damages to Standard Chartered.

“We have taken a commercial decision and (concluded) an agreement with the CPC to end this long-standing issue,” Sri Lanka’s The Sunday Times newspaper quoted Standdard Chartered chief executive Anirvan Ghosh Dastidar as saying.

The newspaper said in April the cabinet of ministers had approved a settlement to pay 60 million US dollars, over a 180 million US dollar claim.

Sri Lanka’s Central Bank also slapped an exchange control fine on the bank. The report said the fine may be withdrawn as part of the settlement.