Mar 11, 2016 (LBO) – The Ceylon Petroleum Corporation has obtained Cabinet approval to open a State-owned lubricant manufacturing company to avoid the high expenditures on lubricants.
As per the government sources, the proposed company will commence within the next two weeks with an initial investment of 13 million US dollars.
2016 budget proposed to liberalize the lubricant market and encouraged the companies to venture into more value added products with high investment. It also proposed to remove lubricants from BOI negative list.
Chevron Lubricants Lanka, however in its annual report said the industry is at risk of further fragmentation with 13 players and possibly more competing for a share of the 54mn liter market in a backdrop of sluggish industry growth.