IOC signs agreement with GOSL, receives SLR 44.46bln

New Delhi, Jan 9 (UNI) IndianOil's Subsidiary, Lanka IOC Ltd has signed a settlement agreement with the government of Sri Lanka, under which the company has secure oil bonds worth 4.46 billion Sri Lankan rupees for selling fuel at a compensated rates in the island nations.

The bonds are non-tradable in nature, holding an interest rate of 11 per cent and a maturity period of two years.

Since July 1, 2006, pricing of petrol and diesel has been de-regulated in Sri lanka and the players have been allowed to fix the end-prices reckoning market conditions.

Consequently, no susbsidiary is payable to Lanka IOC by the government of Sri Lanka beyond June 30 last year.

UNI