Nov 02, 2012 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation has lost a 60 million dollar arbitration claim over oil derivatives against Deutsche Bank, a media report said. Reuters a news agency said a US based arbitrator has rule in favour of Deutsche Bank.
“It’s against us,” the agency quoted Sri Lanka’s Attorney General Palitha Fernando as saying “Now we are considering what actions to be taken to annul this.”
A British court has also ruled against CPC in a case brought by Standard Chartered Bank, but the petroleum utility won an arbitration case in Singapore brought by Citi group.
CPC is bought into a complex options based contract with heavy downside risk to resist global price increases and manipulate oil prices at home.
Oil and power price manipulations drove the country into a balance of payments crisis in 2011/2012 and on several earlier occasions.