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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.
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"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.
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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 The report said the fine may be withdrawn as part of the settlement.