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Tuesday May 21st, 2024

Sri Lanka to ink fuel retail deals with Sinopec, RM Parks-Shell in May

ECONOMYNEXT – Sri Lanka will sign fuel retail agreements with China’s state-owned petroleum corporation Sinopec mid-May with operations to commence 45 days thence, Power & Energy Minister Kanchana Wijesekara said.

Wijesekara tweeted Wednesday April 26 afternoon that he met a Sinopec team that arrived in the island the previous day to finalise the agreements.

Sinopec is one of several overseas companies that Sri Lanka plans to lease 150 of its fuel filling stations to. Cabinet approval for this proposal was granted end-March 2023.

President Ranil Wickremesinghe’s administration has decided to sell government stakes in seven key state-owned enterprises (SOEs) including loss-making fuel retailer Ceylon Petroleum Corporation (CPC). Restructuring SOEs has been on high on the agenda of the Wickremesinghe government as part of its reform plans consequent to finalising an agreement with the International Monetary Fund (IMF) for a 2.9 billion US dollar extended fund facility.

Delegations from China Merchants Group and Sinopec groups were previously in Sri Lanka in March looking for further investments in the island. The Beijing-based company was already involved in bunkering operations in Hambantota.

In a subsequent meeting with President Wickremesinghe on March 13, Sinopec pledged to invest in the southern district.

Political analysts saw the move as part of Chinese efforts to consolidate investments in Sri Lanka’s ports and energy sector amid security concerns raised by the island nation’s immediate neighbour India and the United States.

Related:

China’s Sinopec eyes refinery investment in Sri Lanka amid rising geopolitical concerns

 

Meanwhile a date in mid May has been set to sign agreements with the RM Parks-Shell to commence operations by June first week.

“From the observations made by RM Parks-Shell technical officials that visited CPSTL tank farm last week, offered to upgrade CPSTL berthing facilities to be in line with international standards & safety requirements” Wijesekara said.

(Colombo/Apr26/2023)

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  1. Buddhist says:

    Why should the Govt sign separate agreements at separate times with parties re: petroleum why not sign the same agreement with all parties so that no one gets undue advantage or benefit? In a country where bribery is at its height, this is a classic example of how someone could benefit personally.

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  1. Buddhist says:

    Why should the Govt sign separate agreements at separate times with parties re: petroleum why not sign the same agreement with all parties so that no one gets undue advantage or benefit? In a country where bribery is at its height, this is a classic example of how someone could benefit personally.

Sri Lanka declares May 21 as National Mourning day over Iranian President’s death

ECONOMYNEXT – Sri Lanka declared a national mourning day on Tuesday, May 21 in view of expressing its solidarity with Iran after sudden death of Iran President Ebrahim Raisi following a helicopter crash.

President Raisi and eight others including Iranian Foreign Minister Hossein Amir Abdollahian were killed in the crash when the helicopter had a “hard landing” reportedly due to adverse weather conditions with heavy fog. However, President’s two convoy helicopters reached the destination safely.

“The Sri Lankan government has declared a national mourning day on tomorrow (May 21) on behalf of the sudden death of Iranian president Mr. Ebrahim Raisi,” the Department of Government Information said in a statement.

It also urged all the state institutions have to hoist the national flag half mast.

Raisi was in Sri Lanka on April 24 to launch the Uma Oya dam on a one-day official visit amid tight security. His helicopter crashed when he was returning to Iran after launching a dam in the Azerbaijan border.

President Raisi is seen as a hardliner and a potential successor to Supreme Leader Ayatollah Ali Khamenei.

Earlier this month, Sri Lanka’s Foreign Minister Ali Sabry said the island nation will deal with Iran for investments and trade without being caught into the United States-led sanctions.

Sri Lanka was unable to receive $450 million from Iran for a recently opened Uma Oya multipurpose project started before the sanctions.

Sri Lanka now exports tea to Iran for no dollar payment. Instead, Sri Lanka tea producers are paid by the state-owned Ceylon Petroleum Corporation (CPC) in rupees for the pending crude oil import payments for Iran.

President Ranil Wickremesinghe expressed his condolences on the tragic incident.

“Sri Lanka is deeply shocked and saddened by the tragic death of President Ebrahim Raisi, Foreign Minister Amir Abdollahian and other senior Irani official,” he said in his official X-platform.

“I express my deepest sympathies and sincere condolences to the bereaved families, the government and the people of Iran.”

Raisi, a Muslim jurist, served as the eighth president of Iran from 2021 until his death. (Colombo/May 20/2024)

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Sri Lanka helps launch Global Blended Finance Alliance

ECONOMYNEXT – Sri Lanka has joined a group of nations led by Indonesia which aims to mobilise capital to achieve carbon neutrality, Minister of Water Supply and Estate Infrastructure Jeevan Thondaman said.

The Global Blended Finance Alliance mooted by Indonesia in 2018, was formally launched at the World Water Forum in Bali today.

Among the other founding members are Fiji, France, UAE, Kenya, Luxembourg and Canada.

“Through our collective efforts, the Global Blended Finance Alliance aims to mobilise both public and private capital to help nations achieve carbon neutrality and the SDGs,” Thondaman said on social media platform X (twitter).

“The world has a USD 2.5 trillion funding gap to achieve the Sustainable Development Goals (SDGs) by 2030,” he said.

Blended finance is the strategic use of development finance, such as public and/or philanthropic funds, for the mobilisation of additional commercial finance towards sustainable development in developing countries. (Colombo/May20/2024)

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Sri Lanka rupee closes slightly stronger at 299.60/75 to US dollar

ECONOMYNEXT – Sri Lanka’s rupee appreciated slightly to close at 299.60/75 to the US dollar on Friday, from 299.70/80 the previous week, dealers said. Bond yields were up.

A bond maturing on 15.12.2026 closed up at 10.15/35 percent from 10.05/15 percent.

A bond maturing on 15.09.2027 closed up at 10.45/55 percent from 10.25/40 percent.

A bond maturing on 01.07.2028 closed at 10.80/90 percent.

A bond maturing on 15.01.2030 closed at 11.70/80 percent.

A bond maturing on 01.10.2032 closed up at 11.90/12.05 percent from 11.85/12.00 percent. (Colombo/May20/2024)

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