February 10, Colombo (LNW): In a significant stride towards stabilizing the country’s energy finances, Sri Lanka’s Power and Energy State Minister, D. V. Chanaka, announced the successful revenue generation of US$ 3 million through the sale of 5,200 MT of fuel via the revived bunkering system for vessels. This accomplishment marks a positive development in Sri Lanka’s efforts to ensure energy security and navigate global oil price fluctuations.
State Minister Chanaka highlighted the establishment of a US$ 200 million buffer stock as a proactive measure to mitigate future economic fluctuations and secure energy resources. This strategic move demonstrates the government’s commitment to long-term energy security and financial stability.
Reflecting on past challenges, State Minister Chanaka recalled a time when Sri Lanka faced fuel shortages and long queues. However, he commended the collective efforts that have led to the nation’s gradual progress and stability in oil supply. He expressed gratitude to all involved parties for their dedication and collaboration.
The State Minister proudly announced that Sri Lanka currently holds the largest oil reserves in its recent history, indicating a substantial improvement in fuel security and preparedness. He reassured the public about the maintenance of a balanced petroleum legal corporation dollar system, highlighting responsible financial management within the sector.
To further enhance energy security, the government is building a US$ 200 million buffer stock to safeguard against potential economic shocks. Additionally, they maintain a weekly supply of dollars to meet immediate needs, showcasing responsible financial management.
State Minister Chanaka detailed the current fuel stock, exceeding 75,410 tons and comprising various types of fuel for vehicles, aviation, and power generation. This achievement results from securing long-term contracts through tender procedures, ensuring a steady supply for the next six months.
He acknowledged the seasonal rise in global oil prices due to winter in Europe but expressed optimism for a decrease after March. The government plans to leverage this anticipated price drop to benefit consumers. State Minister Chanaka also highlighted the elimination of late payment fees since 2023, achieved through strategic storage of ships upon arrival and timely purchases using available dollars.
In a bid to optimize pricing and reduce costs, Sri Lanka is transitioning from the traditional tender method to an auction system for oil procurement. This initiative, almost 95 percent implemented, leverages expertise from the oil storage terminal for effective execution.
The revival of the bunkering system, allowing ships to refuel, generated US$ 3 million in revenue in 2024. Plans are underway to expand this service by providing diesel to vessels soon, further contributing to Sri Lanka’s thriving energy sector.