ECONOMYNEXT – Sri Lanka is in discussions with suppliers to allow them to bring aviation fuel, stock them in state-run Ceylon Petroleum Corporation’s facilities and pay them later from the revenue earned from sales, Energy Minister Kanchana Wijesekera said.
Sri Lanka is short of aviation fuel due to the inability of the CPC to find foreign exchange to pay suppliers, who are demanding pre-payment as the state-run firm has a monopoly on aviation fuel.
SriLankan Airlines and Airport and Aviation Services and some other companies had asked for permission to import and sell aviation fuel, but the legal monopoly is with the CPC.
Therefor an attempt is being made to make supplies available based on the ‘existing legal framework’.
“There are 7 proposals to supply aviation fuel,” Minister Wijesekera said. “We hope to enter into an agreement where the CPC or the government does not make any payment to the supplier.
“The supplier will bring the fuel and store it at our facilities and tanks.
“The CPC will sell the fuel and pay them. At the moment there are six such proposals.
“We will chose the best proposal and enter into an agreement for a year.
“We have got cabinet approval for that activity.”
State-run Sri Lankan Airlines is stocking up for long haul flights from India due to the CPC monopoly.
Foreign airlines are ‘tankering’ or bringing extra fuel to Colombo for the return journey due to the CPC monopoly. (Colombo/June07/20220