Sri Lanka Carefully Schedules Shipments and Fills Gaps

COLOMBO (News 1st); Sri Lanka is prioritising stability, transparency, and continuity in its fuel supply by carefully scheduling shipments and filling emerging gaps, President Anura Kumara Dissanayake said, outlining the government’s approach to managing energy security amid global disruptions.

The President noted that spot purchasing had long been regarded as the most destructive form of corruption entrenched within the Ceylon Petroleum Corporation.

As a result, the government has consistently worked to secure the country’s energy supply through long-term tenders.

From the day the administration assumed office, its focus has been on entering into long-term agreements to meet Sri Lanka’s energy requirements in a structured and sustainable manner.

Discussions were held with multiple countries as part of this effort, with authorities remaining conscious that even tender processes can be manipulated. To further strengthen safeguards, the government moved towards government-to-government agreements.

The Minister of Energy held discussions with several nations, while the Deputy Minister of Economy visited the United Arab Emirates and engaged in talks, ensuring that all possible avenues were explored.

President Dissanayake said the government’s position was clear: long-term tenders remain the most advantageous and cost-effective method, with minimal scope for fraud and corruption. Several strategic plans were developed based on this principle.

Sri Lanka continues to receive refined fuel from companies based in Singapore and India under long-term agreements, with no disruptions reported in those supplies.

However, challenges emerged in relation to crude oil. Sri Lanka’s primary source of crude oil is the Port of Fujairah, from where a shipment of 90,000 metric tonnes was scheduled to arrive on March 24 and 25. Following an attack on the Port of Fujairah, this long-term shipment was postponed by the supplier. In addition, another single tender for 90,000 metric tonnes of crude oil from Fujairah, which had already been awarded, will also not be delivered.

When the situation arose, authorities carefully assessed where the main risk lay, said the President.

The Minister of Energy and the Chairman of the Ceylon Petroleum Corporation confirmed that, under agreements already in place with Indian and Singaporean companies, shipments of refined fuel would continue to arrive in Sri Lanka without interruption. As a result, the primary issue identified was the non-delivery of the two crude oil shipments.

In response, an additional tender was called on March 5 as a precautionary measure, despite existing long-term tenders. The tender was opened on March 17.

Recognising that crude oil could become a constraint, and noting that only 35 percent of the country’s fuel requirement can be met through refinery operations, the government also focused on securing refined fuel if crude oil could not be sourced from the region.

Accordingly, the March 5 tender covered diesel, petrol, furnace oil, Jet A1 fuel, and crude oil. Two crude oil shipments were sought to replace the cancelled deliveries. When the tenders were opened, a diesel shipment was awarded with an expected arrival on April 6 or 7. A petrol shipment was awarded for April 16 or 17, furnace oil for April 12 or 13, and Jet A1 fuel for April 10 or 11.

Separate tenders were also called for crude oil deliveries in April and June. While no suppliers came forward for April, one company agreed to deliver a crude oil shipment in June, and the tender was awarded.

All tenders for diesel, petrol, furnace oil, and Jet A1 fuel were successfully finalised.

In addition, as an extension of the tender process, another diesel shipment was secured on March 18, with delivery scheduled for April 7 or 8.

President Dissanayake said that if crude oil requirements cannot be met, the government’s priority will be to import refined fuel to ensure continuity.

At the same time, due to the ongoing conflict, two crude oil shipments of 90,000 metric tonnes each, a petrol shipment scheduled for April 7 or 8, and a private supply of 35,000 metric tonnes of diesel and petrol scheduled for April 7 and 8 were postponed. Filling these gaps remains a key policy objective.

He also explained that bringing in very large shipments simultaneously is not possible due to limited storage capacity. Once a vessel begins unloading, no other ship can enter the port until the process is complete. Unloading 90,000 metric tonnes of oil takes around eight days, during which time no additional vessels can dock.

Accordingly, fuel shipments have been carefully scheduled, and the government says it is actively working to fill supply gaps and ensure uninterrupted fuel availability across the country.