Sri Lanka faces Deutsche Bank claim in oil derivatives dispute

by Suranee | April 4, 2009 at 12:46 am

387 views | 13 Recommendations | 13 comments

The Deutsche Bank claims that the Sri Lankan government violated the bilateral investment treaty between German and Sri Lanka.

The bank has filed arbitration proceedings against the government of Sri Lanka over non-payment in oil derivatives deals with state refiner Ceylon Petroleum Corporation (CPC).

April 04, 2009 (LBO) - Deutsche Bank has filed arbitration proceedings against the government of Sri Lanka over non-payment in oil derivatives deals with state refiner Ceylon Petroleum Corporation (CPC).

The Deutsche Bank claim was registered with the International Centre for Settlement of Investment Disputes (ICSID) on 24 March 2009, according to the international dispute resolution centre.
The bank claims that the Sri Lankan government violated the bilateral investment treaty between German and Sri Lanka.

The dispute arose after the CPC suspended payments in several oil derivatives transactions, sold in 2007, when the deals went against it after oil prices collapsed in 2008.

Deutsche Bank sold a contract worth 100,000 barrels to the CPC whereas Citibank sold contracts worth 400,000 barrels, Standard Chartered 300,000, People's Bank 100,000 (including 50,000 bought from Commercial Bank), and Commercial Bank 20,000 direct (and 50,000 via People's Bank).

Another bank that has already gone into arbitration against the CPC is Citibank.

Deutsche Bank sold a contract worth 100,000 barrels to the CPC.

The Sri Lankan government has appointed a committee to re-negotiate the deals, which, apart from Deutsche Bank, were also sold to CPC by Citibank, Standard Chartered, and two Sri Lanka banks; state-run People's Bank and public listed Commercial Bank of Ceylon.

Citibank had sold contracts worth 400,000 barrels, Standard Chartered 300,000, People's Bank 100,000 (including 50,000 bought from Commercial Bank), and Commercial Bank 20,000 direct (and 50,000 via People's Bank).

The original contracts were at half the volumes, but under the terms of the contract, volumes doubled when prices collapsed.

Citibank has already gone into arbitration against the CPC.

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Paschen

at 06:04 on April 4th, 2009

Well, Sri Lanka has a war to finance and has defied UN as well as International law as is, this is not surprising and may have some harsh consequences for Sri Lanka.

I suppose Sri Lanka better starts making peace with the Tamils.

Suranee

at 06:23 on April 4th, 2009

Yes Paschen, this is what Sri Lanka should strive to do, make peace with the Tamils. But as long there are people who hold onto the belief that Sri lanka is for one race, the Sinhalese race, I don't think that such peace will become a reality.

israeli.agent

at 06:25 on April 4th, 2009

Paschen, The only thing that stands in the path of peace in Sri Lanka is the terrorist LTTEs. Like the WW2 ended in the complete defeat of the side who think they belong to superior race, peace is only possible if LTTE is defeated completely.

Like the defeat of Axis ended the WW2.

People in Sri Lanka are Tamils , Sinhalese, Muslims and so many other ethnic groups. There is no need to make peace with Tamils and Sri Lanka as both are same.

No LTTE = Yes Peace in Sri Lanka.

.Agent.

Paschen

at 07:19 on April 4th, 2009

IA, I know a lot of people that believe they belong to a better race or even call them self the chosen people of God, others believe that their religion of political affiliations are supreme and some even believe that their race, religion, political affiliation and gender are superior to all others.

Yet from there to generalize and mark all Tamil as evil is rather racist and discriminating.

I am certain that most Tamil do not believe to be superior, at least I have not yet meet one of those Tamil being so delusional.

People in Canada are of many cultures, religion and races as well as Political affiliations, and yet Quebec the Francophone part of Canada keep striving towards independence, however they learned to deal with it on a democratic level after a period of terrorism and violence in the 70s.

Northern Ireland is another example with such problems and so would be the Basque in Spain and the FNC in Corsica, France. There are countless example of such problems and some have learned to make compromises and other just kill each other. I wonder which is more mature and humane.

Tamiya

at 19:37 on April 4th, 2009

Hi Paschen,

Tamils in Sri Lanka have been oppressed for last 60 years.

Only thing we are asking for is our independent state back from Sri Lanka, which the British colonial power took away 1833 and left it as such in 1948.

Tamils are begging to get a independently monitored referendum to let the world hear Tamils' voice and Tamils desperation for an independent state.

The astounding Sinhalese jouranlist Lasantha Wickrematunge’s last editorial, he wrote:

.... violating the rights of Tamil citizens, bombing and shooting them mercilessly, is not only wrong but shames the Sinhalese, whose claim to be custodians of the dhamma is forever called into question by this savagery, much of which is unknown to the public because of censorship.

What is more, a military occupation of the country's north and east will require the Tamil people of those regions to live eternally as second-class citizens, deprived of all self respect. Do not imagine that you can placate them by showering "development" and "reconstruction" on them in the post-war era. The wounds of war will scar them forever, and you will also have an even more bitter and hateful Diaspora to contend with. A problem amenable to a political solution will thus become a festering wound that will yield strife for all eternity. If I seem angry and frustrated, it is only because most of my countrymen - and all of the government - cannot see this writing so plainly on the wall.

Lasantha Wickrematunge is a freelance write for Times, who was killed by the Sri Lankan Government January 8, 2009 for writing Sri Lankan Government corruptions and Tamils' rights in Sri Lanka.

Would the Isreli agent be able provide any evidence when Tamils thought they are superior to anybody?

Why is he mocking the Tamils humanitarian crisis in Sri Lanka with gags and tales?!

When the Sinhalese extremism in Sri Lanka ever going to realize that Tamils are humans and they deserve their rights too?

Tamiya

at 21:22 on April 4th, 2009

British combined the Sinhalese Kingdom and Tamils Kingdom in 1833.

When British left Sri Lanka, the following is the flag for Sri Lanka, which was the ethnic flag of Sinhalese Kingdom.

Tamils Kingdom's flag, symbols and Tamils rights were denied outright since 1948.

If you actually look at the name Sinhalese means - The name Sinhala translates to "lion people"

Where as the Tamils means people who speak the Tamils language.

In which group you see superiority complex?

Sinhalese ethnic flag Sinhalese ethnic flag (This flag was the flag of Sri Lanka between 1948 and 1951)
The Sinhalese ethnic flag is displayed at right.

israeli.agent

at 21:20 on April 4th, 2009

I have posted my reply here, Paschen.

http://my.nowpublic.com/world/sri-lanka-conflict-my-personal-view-root-cause-part-2

.Agent.

Tamiya

at 21:27 on April 4th, 2009

Is the answer so hard to simplify in one or two paragraph ?

or are you giving the run around from truth?!!

israeli.agent

at 01:48 on April 5th, 2009

Tamiya,

I can talk about that for hours.Give many examples who actually have the pseudo superiority complex. I also know who is actually running away from the truth.

.Agent.