Sri Lanka’s energy sector marks a milestone: USD 3 million revenue from revived bunkering system
Sri Lanka’s State Minister of Power and Energy, D.V. Chanaka confirmed that the island’s state revenue was enriched by USD 3 million from the sale of 5,200 metric tons (MT) of fuel. The revenue comes through the revival of the country’s bunkering system for vessels, marking a crucial step forward in the country’s journey towards economic stability in the energy sector.
The State Minister also highlighted the establishment of a USD 200 million buffer stock, a strategic decision aimed at mitigating future economic fluctuations and ensuring energy security. Minister Chanaka acknowledged the challenging times Sri Lanka faced, including fuel shortages and long queues that tested the patience of its citizens.
Sri Lanka now boasts the largest oil reserves in its recent history, the State Minister said adding that this achievement not only signifies a leap in fuel security but also showcases the country’s preparedness to tackle future challenges.
As part of its strategy to navigate global oil price fluctuations and ensure a steady fuel supply, the Sri Lankan government has taken several proactive measures, the Minister said. The current fuel stock, which exceeds 75,410 tons and includes various types of fuel crucial for vehicles, aviation, and power generation, is the result of securing long-term contracts through tender procedures, ensuring a reliable fuel supply for the next six months, he said.
Despite the seasonal rise in global oil prices due to winter in Europe, Minister Chanaka remains optimistic about a price decrease post-March, which the government plans to leverage for the benefit of consumers. Additionally, he mentioned the elimination of late payment fees since 2023, a strategic move facilitated by timely fuel purchases and efficient storage management.
This series of measures and achievements underscore Sri Lanka’s commitment to securing its energy future and stabilizing its economy. With strategic planning and collaborative efforts, the country is setting a precedent for managing its energy sector amidst global challenges.