• Says allegation that the oil tanks are to be handed over to India is baseless
• MPs Harsha de Silva and Anura Kumara Dissanayake have made an allegation that CPC is to borrow $ 2.5 billion at 7 per cent

By Yohan Perera 

Minister of Energy Udaya Gammanpila yesterday called the trade unions attached to Ceylon Petroleum Corporation (CPC) for a public debate on the Trincomalee Oil Tank Farm deal.

“I would like to call the trade union members of CPC and the Buddhist clergy for a public debate on the Trincomalee Oil Tanks farm deal. I will join their struggle to save the CPC if they prove their allegation is correct. They should tender an apology if I prove that they are wrong,” the Minister said.

“The allegation that the oil tanks are to be handed over to India is baseless. Oil Tanks have already been handed over to India by the UNP government in 2003. I revealed this in Parliament when SJB MP Kabir Hashim raised it.  

He said the then government never signed any agreement with India but only got into an understanding which could be revised. I challenged him to prove it within that day. However, Mr. Hashim went missing in the House,” Mr. Gammanpila said.

“MPs Harsha de Silva and Anura Kumara Dissanayake have made an allegation that CPC is to borrow $ 2.5 billion at 7 per cent. CPC owes $ 3.6 billion to two state banks. The rate at which these funds have been borrowed is 5.5 per cent. Only one company was willing to provide a loan without a sovereign guarantee. This is US-based GSL Corporation Ltd. The others wanted a guarantee from a bank that enjoys triple ratings. Sri Lanka might lose an opportunity to borrow at a lower rate if this opportunity is not made use of. I explained this position to the cabinet,” he also said.