Sri Lanka Pursues Foreign Oil Companies Amid Acute Fuel Shortages

Last month, Sri Lanka decided to allow such imports and sales, as it scrambles to ensure sufficient supplies of petrol and diesel

Ceylon Petroleum Corp, which controls about 80 per cent of the market with a national network of 1,190 fuel stations, will give a share of its resources and pumps to the new entrants, the government said.

Source : Getty

In a bid to resolve acute fuel shortages, crisis-hit Sri Lanka on Tuesday pursued foreign oil companies to import and sell their products in the island nation, Reuters said.

Sri Lanka has been witnessing its worst financial crisis since its independence from Britain.

According to the report, depleted foreign exchange reserves have left the country unable to pay for imports of essential items from fuel to food and medicines.

Kanchana Wijesekera, the power and energy minister, said on Twitter, “An advertisement was published today calling for expression of interest (EOI) for oil companies to import, distribute and sell petroleum products in Sri Lanka.”

Advertisement was published today calling for EOIs for Oil Companies to Import, Distribute & Sale of Petrolieum Prodcuts in SL. Selected companies will be able to operate CEYPETCO & New Fuel stations, providing access for for new companies to engage in the Retail Business in SL. pic.twitter.com/ZtPpG7pU3h

— Kanchana Wijesekera (@kanchana_wij) July 26, 2022

Last month, Sri Lanka decided to allow such imports and sales, as it scrambles to ensure sufficient supplies of petrol and diesel.

The approvals for oil firms to be picked will effectively end a market duopoly involving a subsidiary of India's state-run Indian Oil Corp.

Reuters reported that the government said in its notice that state-run Ceylon Petroleum Corp (CPC), which controls about 80 per cent of the market with a national network of 1,190 fuel stations, will give a share of its resources and pumps to the new entrants.

Sri Lankan protesters angry about the shortages toppled the Rajapaksa ruling family, ushering in a new government after forcing the resignation this month of the previous president, Gotabaya Rajapaksa, who fled to Singapore. "Now that Rajapaksa is no longer shielded by immunity, Singapore must seize this remarkable opportunity," said Archana Ravichandradeva, of the group People for Equality in Relief in Lanka.

It is one of the groups that sent a joint letter to the Singapore official on Tuesday, following a request last week by another rights group seeking a similar probe against Rajapaksa.