Cabinet approves to deregulate Sri Lanka’s lubricants industry
Sri Lanka’s Cabinet of Ministers has approved a proposal by the Minister of Power and Energy to grant licenses to new companies who wish to participate in the country’s lubricants industry.
The Ceylon Petroleum Corporation Act (No. 28 of 1961) and its accompanying amended provisions have empowered the Minister in charge of Petroleum Resources Development to select new applicants and grant licenses accordingly.
Currently only 26 companies, including state-owned Ceylon Petroleum Corporation (CPC), are licensed to operate in the lubricants industry in Sri Lanka.
Last year, the government approved legislation allowing international companies to directly import and sell fuel in Sri Lanka, in an attempt to cope with higher crude oil prices, which exacerbated its worst financial crisis in decades.
The island of 22 million people, faced with a severe foreign exchange shortage, struggled to import essential commodities such as food, fuel, medicine, and fertilizer. Extended power outages due to the fuel shortage resulted in violent street protests.