In a bid to curb the prevailing cement shortage and high retail price of cement in the market the government announced its decision of signing of an agreement with American Global Partner (USA) Inc , a US based company to buy cement at US$74/t.
This was decided by the cabinet last week in response to a memorandum submitted by Minister of Industrial Development Kumara Welgama. Accordingly government will receive 300,000t of cement supplies from American Global Partner PLC for a period of 12 months in 24 consignments.
Accordingly the Sri Lanka Cement Corporation (SLCC) the main handling agent of the government will accept the performance bond of 2% of the value of single consignment for the transaction of supplying entire cement load. In that sense SLCC is expected to furnish a 100% at sight revolving Letter of Credit for one Shipment of 12,500t until the completion of transaction.