Flying Oil

Nov 27, 2007 (LBO) – Lanka IOC, a unit of Indian Oil Corporation, had applied to supply aviation fuel at a proposed new airport in southern Sri Lanka, a top official said. "We have applied to the government to provide aviation fuel at the new Weerawila airport," Lanka IOC managing director K Ramakrishan told LBO.

"The airport needs infrastructure for fuel."

Sri Lanka has announced that it is building a new airport at Weerawila in the southern Hambantota district of the island.

Fuel at the existing Bandaranaike airport in Colombo is provided by the state owned Ceylon Petroleum Corporation (CPC).

Aviation fuel supply is a profitable business as it is not under price control from the government.

Infrastructure at the Katunayake airport was not included in the jointly owned common user facility that Lanka IOC shares with the CPC.

It had been eying the aviation business at Katunayake for several years, but the government has so far not allowed competition at the country's only international airport.

Lanka IOC entered the petroleum business in Sri Lanka with a third share of the petrol, diesel and kerosene retailing business.

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