May 23, 2023
2 mins read

Lanka, China’s Sinopec ink deal to secure fuel supply

According to the deal, Sinopec will involve in importing, storing, distributing, and selling petroleum products in predetermined distribution dealer operated networks in Sri Lanka….reports Susitha Fernando

Sri Lanka inked a deal with China’s Sinopec to secure fuel supply, a business that was jointly operated by the state-run Ceylon Petroleum Corporation (CPC) and India’s Lanka Indian Oil Company (LIOC).

According to the agreement, Sinopec will involve in importing, storing, distributing, and selling petroleum products in predetermined distribution dealer operated networks in Sri Lanka.

Battered by dollar crunch, one of the key requirements for the new retail supplier was to secure forex requirements without depending on Sri Lanka’s banking sector.

“It was mandated that these companies source their own funds for fuel procurement through foreign sources, at least during the initial one-year period of operation,” President’s Media Division (PMD) stated in a statement.

“In response to the ongoing foreign exchange crisis in Sri Lanka, the Ministry of Power and Energy has taken this decisive action to ensure an uninterrupted fuel supply to consumers. With the inability to provide sufficient foreign exchange for fuel shipments, the CPC and LIOC faced significant challenges,” the PMD added.

“In a significant move to address Sri Lanka’s fuel supply challenges, a contract agreement was signed with Sinopec, a leading international petroleum company. The agreement, signed, marks a crucial step in ensuring a steady and uninterrupted fuel supply for the nation,” the President’s Media added.

M/s Sinopec Fuel Oil Lanka (Private) Limited along with its affiliated companies was selected among other two competitors, M/s United Petroleum Pvt Ltd, in Australia and RM Parks in the USA, in collaboration with Shell PLC. Sinopec is set to commence operations in Sri Lanka within 45 days following the issuance of the licence, PMD stated.

The deal is also part of government’s decision to restructure loss making state-owned enterprises such as the CPC. The move is also an initiative to win the much needed International Monetary Fund (IMF) for a 2.9 billion US dollar extended fund facility.

Sinopec, with its address in Hambantota, Sri Lanka’s southernmost city where Chinese controlled port is situated, already runs bunkering operation there.

Sri Lanka’s deal with Sinopec also marks China’s entrance to energy sector which only the immediate neighbour India had the outside access.

ALSO READ: Fear of flood looms over Lanka

Previous Story

‘Drishyam’ prepares for South Korean remake

Next Story

PTI to challenge military trials in Supreme Court

Latest from -Top News

Bangladesh Elections on EU Radar

EU Pre-Election Team to Visit Bangladesh in September Ahead of 13th Parliamentary Polls…reports Asian Lite News Bangladesh Election Commission’s Senior Secretary Akhtar Ahmed announced on Monday that a European Union (EU) pre-election

After Pakistan, China Backing Iran Too?

China and Iran signed a 25-year comprehensive cooperation agreement that covered trade, energy and security, showcasing the strategic value that Beijing places on Tehran….reports Asian Lite News Despite its long-standing claims of

US-India ties is a slow-motion catastrophe

For the first time in two decades, Trump’s actions, statements, and coercive tone have made relations with the US a combustible domestic political issue in India, writes Manoj Menon The post-globalisation uncertainty

Modi Welcomes Marcos Jr to Delhi

PM Modi Welcomes Philippines President Marcos Jr to Strengthen India-Philippines Ties…reports Asian Lite News Prime Minister Narendra Modi on Tuesday warmly welcomed Philippines President Ferdinand R. Marcos Jr at Hyderabad House in

Is Bangladesh Turning Into a Theocratic State?

The rise of radical Islamic influence under Yunus’s watch threatens to transform Bangladesh from a secular democracy into a theocratic state….writes Anna Mahjar-Barducci Nobel Peace Prize laureate Muhammad Yunus’s transition from economist
Go toTop

Don't Miss

China’s coal output boost poses threat to climate

Xi stated that the country could not simply introduce bars

Chinese tracking device found in UK govt car

As per the report, searches were conducted due to fears