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Sri Lanka's IOC unit keeps economy oiled

Apr 24, 2017 19:40 PM GMT+0530 | 2 Comment(s)

ECONOMYNEXT - Lanka IOC, a unit of the Indian Oil Corporation, is maintaining deliveries to its network of fuel stations, a top official said as pumps ran dry in distributors of state-run Ceylon Petroleum Corporation amid a strike.

Lanka IOC owns and operates about a third of the retail fuel market in the country, after the monopoly of CPC was broken in a privatization drive, vastly improving the quality of fuel and fuel stations.

A common user facility Ceylon Petroleum Storage Terminals, which Lanka IOC operates in Colombo, has also been hit by strike action.

An LIOC official said the firm was transporting fuel from a tank farm in Trincomalee in the north-east of the country.

Unions are opposing a joint development of remaining tanks in Trincomalee port, which they say is further privatization of state assets.

A strike leader claimed that reduced fuel distribution would boost the economy.

Strike leaders who have links to the Sri Lanka Freedom Party and the Janatha Vimukthi Peramuna have opposed privatization, and wanted them kept under the control of the elected ruling class to ensure that SOEs like Ceylon Petroleum Corporation is overstaffed and rife in procurement corruption. (Colombo/Apr24/2017)


 

2 Comments

  1. parakrema April 25, 06:39 AM

    I am all for privatisation, I lived in England during IRON LADY (Margaret Thatchers reign)She privatised Coal, Electricity Water, Gas, Telecom, etc etc. It brought in competition and the people benefitted greatly as prices of these uttilities came down.
    Also the state benefitted from taxes levied on these industries, only the losers are the Trade Unions who exploited the innocent workers for their own benifit.

  2. Nana April 24, 09:36 AM

    Sri Lanka have become Singapore very easily 20 Years before if CPC, CEB, Srilankan and useless political play houses were privatised. In that sense So main enemy of Sri Lanka is JVP, who opposed these moves When UNP (Who are also corrupt) but tried to do it many times with IMF pressure.

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