Sri Lanka asks Petronas to defer repayments on oil supplies

Sri Lanka has asked Petronas, Malaysia's national oil corporation, to defer repayments on oil supplies to the Indian Ocean island which is facing a cash crunch due to rising world oil prices, said its finance minister, Sarath Amunugama.
Amunugama, who returned to the island after visiting Malaysia for a conference on financial sector issues in emerging markets, was quoted as saying that Malaysia's state-owned oil firm was considering the request.

Some 30 % of Sri Lanka's oil requirements comes from Petronas. Sri Lanka, hit by rising crude prices overseas that triggered rapid hikes in fuel prices here, has been discussing with its main suppliers for similar deferred payment terms to ease a foreign exchange crisis.
Regular fuel hikes in Sri Lanka have also set off a chain of price increases in essential commodities and food.

The finance minister, on his return from the conference, described his trip to Malaysia as successful.
Amunugama also said Proton, the Malaysian national carmaker, was considering setting up a plant in Sri Lanka while Malaysian authorities were also looking at setting up an oil refinery there.