Sept 08, Colombo: Minister of Petroleum Resources, A.H.M. Fowzie is reportedly opposed to taking fresh credit facilities to upgrade the Sapugaskanda Oil Refinery fearing the existing debt of Ceylon Petroleum Corporation would increase and consumers would be burdened with drastic price hikes.

“The CPC is currently paying a considerable amount of money as interest for the existing credit facilities. If fresh loans are taken, the debt servicing will be high and the burden has to be borne by the consumers,” Minister has stated.

According to sources, Sri Lankan government has already requested People’s Bank and Bank of Ceylon to collectively lend US $ 450 million which is Sri Lanka’s portion of thirty percent required to upgrade the Sapugaskanda Oil Refinery. The remaining 70 percent is to be funded by Iran.