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Wednesday February 1st, 2023

Sri Lanka makes contact with nominated Russia oil firms: Minister

ECONOMYNEXT – Sri Lanka has made contact with several companies suggested by Russia’s embassy in Colombo to buy crude, Energy Minister Kanchana Wijesekera said as attempts were being made to get oil on credit to keep the country’s sold refinery running.

“I have the replies from the Russian companies which were suggested by the Russian Ambassador,” Minister Wijesekera told reporters.

“The ambassador for Russia in the country asked me to send the replies of the company, and he will also intervene in the process.

“Also we have sent the message to the Sri Lankan Ambassador in Russia, Janitha Liyanage.”

However, the process is taking time.

Sri Lanka has already bought one shipment of Siberian crude from the international market Dubai-based Coral Energy, officials have said. However Russian state companies are reportedly giving crude at lower prices to countries that can pay.

Due to monetary instability triggered by central bank money printing, Sri Lanka has forex shortages making it difficult to find dollars at fixed prices for large import bills.

Sri Lanka is trying to get crude on credit as it had done during previous currency crises when the central bank printed money and triggered forex shortages.

Sri Lanka’s oil bill has risen to 550 million US dollars a month by June 2022 and the energy ministry has been talking to the central bank to get dollars. The central bank has run out of reserves after two years of money printing but the agency is yet to shift to a free float which will balance outflows to inflows.

Sri Lanka now owes oil firms 730 million US dollars for oil imported on credit, and they are unwilling to supply fuel without upfront payments or deposits, Minister Wijesekera said.

“For crude oil also we have contacted several countries,” Wijeskera said. “We had discussions with embassies in the country as well.

“Even though we have requested firms, due to the financial situation and the ratings of the banks in the country most companies do not agree to get into loan schemes to get oil.

Sri Lanka’s sole refinery is now running with the last Siberian crude shipment.

With the Sapugaskanda refinery being reopened, the available crude stock is being used in the minimum amount to continue the operations of the refinery.

The subcommittee also permitted to import another four ships of crude oil, Wijesekara said

“We can use them in the refinery to increase the current capacity. Until then we are keeping the production at a minimum level,”

According to Wijesekara, currently, around 350 Metric tonnes of Petrol and 600 Metric tonnes of Diesel are being produced by the refinery along with furnace oil and LP gas.

“A ship needs around 80 million US dollars. We have got one Company through the tender process for 3 ships,” Wijesekara said.

“We have given the permission for another three companies to import crude oil and only one has agreed to get us two ships on June 28 and 29.” (Colombo/June 17/2022)

Comments (2)

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  1. Christopher Rabbit says:

    Either SL is begging for oil on credit, or giving too much attention to the US dollar to try to pay for it. How hard is it to pay for this Russian oil in rubles? Won’t it be more affordable than a massive 365+ rate that is already being paid? Nobody is going to want to give a country that is so mired in debt, stuff on credit! STOP FOCUSING ON DEAD-END IDEAS THAT WILL NEVER WORK!

  2. Kadija says:

    Central bank..printing money for two years
    Wow, it’s like illegal money mongers who print fake money, a country’s backbone is the central bank, to nurture a healthy economic structure. Who is the retard who suggested & implemented the printing of money for two long years? it beats me.. these are uneducated donkeys who were given high commands, just like the Srilanka parliament now known as the lunatics’ asylum

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Comments (2)

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Your email address will not be published. Required fields are marked *

  1. Christopher Rabbit says:

    Either SL is begging for oil on credit, or giving too much attention to the US dollar to try to pay for it. How hard is it to pay for this Russian oil in rubles? Won’t it be more affordable than a massive 365+ rate that is already being paid? Nobody is going to want to give a country that is so mired in debt, stuff on credit! STOP FOCUSING ON DEAD-END IDEAS THAT WILL NEVER WORK!

  2. Kadija says:

    Central bank..printing money for two years
    Wow, it’s like illegal money mongers who print fake money, a country’s backbone is the central bank, to nurture a healthy economic structure. Who is the retard who suggested & implemented the printing of money for two long years? it beats me.. these are uneducated donkeys who were given high commands, just like the Srilanka parliament now known as the lunatics’ asylum

Sri Lanka coconut prices ease at auction

ECONOMYNEXT- Sri Lanka’s coconut auction prices fell in the last auction in January 2023, with average prices going down by 4.1 percent at an auction on January 26, data showed.

The average price for 1,000 nuts fell to 80.811.89 from 84,116.85 a week earlier at the weekly auction conducted by Sri Lanka’s Coconut Development Authority.

The highest price was 87,300 rupees for 1,000 nuts down from the previous week’s 90,200 rupees, while the lowest was 72,500 down from 73,000 rupees.

The auction offered 469,564 coconuts and 300,983 nuts were sold. (Colombo/ Feb 01/2023)

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Sri Lanka shares edge up at close

ECONOMYNEXT- Sri Lanka’s shares edged up on Wednesday pushed as investors bought in to beaten down shares following the previous session’s drop, market analyst said.“

At this price level what we are seeing is a lot of confidence from the investors to collect when the prices drop. So, the market is not falling sharply,” a market analyst said.

Market had also seen buying in Expolanka shares on speculation that the parent company of SG Holdings was buying back into the shares.

All Share Price Index (ASPI) edged up by 0.96 percent or 84.96 points to 8,950.01.

The most liquid index S&P SL20 gained 1.27 percent or 35.02 points to 2,799.53.

Banking and Insurance counters had seen interest on the back of positive sentiments from the IMF.

The central bank has said it could cut interest rates in future when the the country sees fall in inflation, which has already started decelerating.

The market saw a turnover of 1.5 billion rupees today,lower than the month’s daily average of 1.8 billion rupees and nearly half of 2022 average turnover of 2.9 billion rupees.

The bourse saw a flow of net foreign inflow of 45 million rupees extending the net offshore buying to 1.9 billion so far this year.

Top gainers of the day were Commercial Bank, Expolanka, and Ceylinco Insurance. (Colombo/Feb01/2023)

 

 

 

 

 

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Sri Lanka bond yields down at close

ECONOMYNEXT – Sri Lanka’s bond yields were down at close following a bond auction on Wednesday, dealers said while a guidance peg for interbank transactions remained unchanged.

“The rates were steady at the auction,” a dealer said.

“This can be a signal to the market saying the rates will go down in the future.”

A bond maturing on 01.07.2025 closed at 32.40/60 percent, down from yesterday’s 32.60/85 percent.

A bond maturing on 01.05.2027 closed at 29.10/35 marginally down from yesterday’s 29.20/75 percent.

The Central Bank’s guidance peg for interbank US dollar transactions remained unchanged at 362.14 rupees against the US dollar.

Commercial banks offered dollars for telegraphic transfers at 371.38 rupees on Friday, data showed. (Colombo/Feb 01/2022)

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