Six new companies selected to import fuel

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The Ministry of Power and Energy has selected six new companies from several countries to import petrol, diesel, crude oil and jet fuel, since many long-term suppliers have abandoned Sri Lanka and are refraining from bidding on tenders due to late debt payments and failure to settle debts, Minister Kanchana Wijesekera said.

The Ministry has also sent the Letters of Award to these companies.

Wijesekera said a total of USD 735 million must be paid to suppliers between June 2021 and June 2022. However, he added that because long-term suppliers are no longer interested in working on projects with Sri Lanka, they must explore new suppliers.

Wijesekera told reporters yesterday (16) that the Ministry had received approximately 110 applications for long-term fuel supply and that a committee had been formed to select an eligible supplier.

A six-member Cabinet subcommittee was tasked with selecting a suitable supplier.

“Because these suppliers are new to us, they will not grant us a credit period of 90 days or three months. Therefore, before we can receive the shipment, we must make a payment,”he said.

In addition, he said that three of the six firms have informed him that they will supply a crude oil shipment if the Central Bank (CBSL) has USD 100 million to pay for it.

As a result, if the CBSL has enough funds, the next shipment of crude oil will arrive in the island on 28 or 29 June.

By Thameenah Razeek