Connect with us

News

Diesel shipment that arrived in Colombo on 16 July still not paid for want of dollars

Published

on

By Shiran Ranasinghe and Sanath Nanayakkara

The Ceylon Petroleum Corporation (CPC) has still not paid for a ship carrying 40,000 tonnes of diesel that had arrived in Colombo Port on 16 July 16. The CPC has to pay 52 million dollars to the Dubai based Coral Energy before unloading the diesel. Moreover, the CPC also has to pay 198,000 US dollars as late charges, port charges and insurance fees.

A senior CPC official said that they purchased the diesel shipment under the spot tender method to resolve the fuel shortages. He added that they did not have dollars to pay for future shipments and that they must limit the stocks released to the market.Earlier this week Governor of the Central Bank Dr. Nandalal Weerasinghe said Sri Lanka needed USD 350-400 million to import oil on a monthly basis excluding for fuel needed to generate electricity.

“Our foreign reserves are at a very low level. If India or China helps us, we can resolve this issue without great difficulty. But now the situation is uncertain whether we will get such assistance. We have requested for assistance, but there is still no certainty that we will get it. Now let’s imagine that we get no support, then as we have used up our foreign reserves there will be oil supplies until the middle of next month for the payments made. How to get oil beyond that is an issue. We have paid for three diesel shipments and two petrol shipments. That is what we are receiving these days. That will be sufficient till the middle of next month with shortages in supplies,” the Governor said.

DR. Weerasinghe said that if India or China agreed to give short term financing, say USD one billion, then Sri Lanka could meet with the oil requirement for three months until a more sustainable arrangement was made. “If we get that short-term financing help, we might get oil or otherwise this fuel crisis will persist,” he said.

“The beginning of an answer to this problem will be from the day we get an IMF fund facility. When that happens, there will be a lot better situation, I can say firmly. So, the uncertainty will remain in the period between now and the point of getting an IMF facility.”

“Let’s say that nobody gives us any financial support. Then we have our export earnings to rely on. We earn about 1 USD billion from it. Then we have our remittances which are about USD 300 million through the banking system. That means we have USD 1.3 billion in foreign exchange earnings. In the event no one helps, then we will have to manage our oil imports with that money. Although our export earnings amount to 1 USD billion, we see a problem there on the part of exporters. Data shows that they don’t bring the total amount of their earnings into the country. In the first 5 months of the year we should have had USD 5 billion. But we see that only 20% of that money has been converted into Sri Lankan rupees. At least 40% of total export earnings should be added to the formal financial system of the country. So exporters have a responsibility at a very difficult time like this to bring back their foreign exchange through the banking system, and if that happens, then we can resolve the fuel crisis comfortably.”



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Former first lady Shiranthi Rajapaksa arrested by CIABOC

Published

on

By

Former first lady Shiranthi Rajapaksa, wife of former President Mahinda Rajapaksa was  produced before the Hulftsdorp court, after  being  arrested by officers of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) and produce

Continue Reading

News

U.S. Navy ship USS Tulsa arrives in Colombo for replenishment visit

Published

on

By

The U.S. Navy ship USS Tulsa (LCS 16) arrived at the Port of Colombo this morning, 7 October 2026 for replenishment purposes.

The visiting ship was welcomed by the Sri Lanka Navy in accordance with naval traditions.

The 127.7-metre-long platform is a Littoral Combat Ship commanded by Commander BM Wanier. Commissioned on 16 February 2019, USS Tulsa has since been in service with the US Navy.

The ship previously made a port call in Sri Lanka on 27 August 2025.

Continue Reading

News

Fuel crunch looms

Published

on

Govt. tells fuel distributors to maintain stocks to ensure uninterrupted supplies

by Saman Indrajith and Norman Palihawadane

The government had instructed private fuel distributors to maintain minimum stocks and ensure uninterrupted supplies to the market, Energy Minister Anura Karunathilaka told Parliament yesterday (06).

Karunathilaka said the Ministry of Energy Secretary had notified the relevant companies of the requirement, following a reduction in supplies by some private distributors, amid higher international fuel prices.

The Minister said private companies had informed the government that they were facing losses because international prices had risen while fuel was being sold, locally, at prevailing prices. As a result, some companies had reduced the volumes released to the market.

The reduced supplies had increased the burden on the Ceylon Petroleum Corporation (CPC), whose share of the diesel market had risen from about 54% to 82%, the Minister said.

“The CPC currently holds an 82% share of the market,” he said, adding that it had increased its supplies, compared with February, to compensate for the reduction by private distributors.

Karunathilaka said the government could not, under the existing agreements with private companies, specify the quantities they should supply to individual filling stations. However, it could require them to maintain minimum stocks in the country.

The Minister said the Energy Ministry had already instructed companies that had failed to maintain the required stocks to take steps to prevent supply disruptions.

The Minister attributed the queues reported at some filling stations to reduced supplies from private distributors, as well as normal variations in fuel distribution. He also said demand for CPC fuel had increased because private companies generally did not provide fuel to dealers on credit, while the CPC offered a three-day credit facility.

“We expect that, as the Ceylon Petroleum Corporation takes on this additional burden, the problem will ease to some extent by Wednesday or Thursday,” Karunathilaka said.

He said instructions had also been issued to increase supplies to CPC filling stations. A special discussion on the issue is scheduled for today (07), with officials of the Energy Ministry and CPC expected to participate,

along with President Anura Kumara Dissanayake.

Meanwhile, Petroleum Dealers’ Association officials have called for an early solution to the supply issue. Association Chairman D.V. Shantha Silva said queues had been reported at many filling stations, mainly those operated by private distributors.

He said the situation was not due to an overall shortage of fuel, but was linked to reduced orders by Lanka IOC, Sinopec and R.M. Parks amid concerns over losses incurred on fuel sales.

The Ceylon Petroleum Private Tanker Owners Association has urged motorists to refrain from panic buying, saying there was no nationwide disruption to fuel supplies.

The government earlier increased fuel prices and introduced a per-litre diesel subsidy following concerns raised by distributors over rising international prices.

Continue Reading

Trending