Cash-strapped Sri Lanka in deal with China's Sinopec to secure fuel

Cash-strapped Sri Lanka has signed a long-term agreement with Chinese oil and gas giant Sinopec on important storage, distribution and sale of petroleum products in the island nation, President Ranil Wickremesinghe’s office said on Monday.
 

The deal with Sinopec — a state-owned Chinese firm — was reached months after the two sides commenced their negotiations and Sri Lanka approved a proposal in March to liberalise the fuel retail marketing in the country. The nation’s fuel retail market was a state monopoly under the Ceylon Petroleum Corporation (CPC) till 2003 when the Indian Oil Company was allowed to operate.
 

 

“Negotiations have been completed with Sinopec Fuel Oil Lanka and its parent company in China and Singapore for a long-term contract on important storage, distribution and sale of petroleum products in the island nation,” the statement issued by the president’s office said.
 

The Cabinet had granted approval to award licenses to Sinopec, United Petroleum Australia, and RM Parks of USA in collaboration with Shell to enter the fuel retail market in Sri Lanka.
 

However, as of now, the deal has been reached with China’s Sinopec only.
 

Meanwhile, Sri Lanka’s National Consumer Price Index inflation eased to 33.6 per cent year-on-year in April, after a 49.2 per cent rise in March, the statistics department said on Monday.
 

Food price rises eased sharply to 27.1 per cent in April from 42.3 per cent in March.