Sapugaskanda oil refinery closed for 50 days to overcome forex crisis

Tuesday, 16 November 2021 02:45 - - {{hitsCtrl.values.hits}}

Minister assures fuel supply will not be affected, calls on public not to have undue fear over a shortage

Energy Minister Udaya Gammanpila

Energy Minister Udaya Gammanpila yesterday said the Sapugaskanda oil refinery has been closed for 50 days to manage the limited foreign reserves to import essential items to the country.

“Considering the heavy rains experienced over the past weeks, Ceylon Electricity Board (CEB) has informed that over 50% of the power is generated via hydro plants and there is no requirement to use fuel for electricity production,” he told journalists yesterday.

He assured that the country’s fuel supply will not be affected in any manner, calling on the public not to have any undue fear over a shortage.

The Minister said foreign reserves saved through non-importation of crude oil will be directed towards purchasing petrol and diesel until the foreign exchange situation is resolved.

The 51-year-old Sapugaskanda oil refinery produces 37% of furnace oil and naphtha, 19% jet fuel and kerosene and 43% for the production of 14% petrol and 29% diesel.

Gammanpila also said the Government is exploring credit facilities to meet the financing of fuel imports to the country, adding that Sri Lanka requires $ 350 million to import fuel monthly.

Given the low international ratings for Sri Lanka, he said it was difficult to strike a deal to secure financial assistance.