ECONOMYNEXT – Russia’s Deputy Energy Minister Roman Marshavin will visit Sri Lanka to hold formal talks for a government-to-government oil deal. Cabinet Spokesman said this amid the fuel shortage and price hike.
Nalinda Jayatissa, the Cabinet Spokesman and Minister of Media and Health said Sri Lanka is exploring oil opportunities with various parties.
“Yes, the talks are in process at the diplomatic level. Russia’s Deputy Energy Minister is due for talks. Then we can further formalise it,” he said at the weekly Cabinet news briefing when asked about the talks with Russia.
“But you all know that we were not able to buy oil from Russia in the past. So we are trying to see if we could strike a government to government deal with Russia.
Sri Lanka’s attempt to secure Russian oil in early 2026 has been a high-stakes balancing act between domestic survival and international diplomacy.
While the U.S. Treasury recently issued a 30-day temporary waiver (March 12 – April 11) allowing the purchase of stranded Russian oil to stabilize markets during the ongoing Iran war, Sri Lanka’s transition has been historically impossible due to two primary barriers:
President Anura Kumara Dissanayake recently admitted to Parliament that the primary hurdle was not just the oil itself, but the risk of U.S. trade retaliation.
With 25% of Sri Lankan exports (primarily apparel and tea) destined for the American market, the government feared that bypassing Trump-era tariffs and sanctions would lead to a devastating economic blow that outweighed the benefits of cheaper fuel.
Unlike regional giants like India, Sri Lanka lacks its own vessel fleet and specialized insurance mechanisms to transport sanctioned or shadow Russian crude.
While Russia is willing to sell, the logistical cost of hiring third-party tankers—which now face 1,000% insurance premium spikes due to the conflict—has made the discounted Russian oil almost as expensive as market-rate fuel by the time it reaches Colombo. (Colombo/March 24/2026)