July 16, 2006 (LBO) – Sri Lanka Sunday invited new lubricant players to invest in the country, following interest from a few foreign companies. The government’s privatisation unit, PERC, said new players can either:
1) import, export, blend, produce, supply, distribute and sell lubricants in Sri Lanka; or
2) import, export, supply, distribute and sell lubricants in the island.
The local lube market estimated at 45,000 kilo litres (283 kilo barrels) is valued at around 6 billion rupees.
“With a view to creating healthy competition for quality lubricants, the government has decided to further liberalise the Sri Lankan lubricant market,” the Public Enterprise Reform Commission said in a notice.
Firms interested, should apply by August 28, PERC said.
The market, which grows at 10 percent each year, is dominated by Chevron Texaco, locally known as Caltex Lanka Lubricants.
Chevron controls around 80 percent of the market, with the balance split between Lanka IOC (13 percent), Servo, Mobil, Valvoline, British Petroleum/Castrol and Shell.
Earlier this year, the government fixed lubricant license fees at 10 millio