Tweaking Terms

Sri Lanka plans to change the terms of controversial petroleum asset sale deal, mandating a third player to secure fuel supplies from state-run Ceypetco's Sapugaskande refinery.









Sri Lanka plans to change the terms of controversial petroleum asset sale deal, mandating a third player to secure fuel supplies from state-run Ceypetco's Sapugaskande refinery. "The government has given us the assurance that even if the third player comes in, there will be a clause that the third party will be obliged to buy from our refinery," Chairman of Ceylon Petroleum Corporation (CPC), Jaliya Medagama told LBO on Thursday.

"My understanding is that the Attorney General’s Department has already cleared this agreement," Medagama said.

The government has been trying to woo a third player alongside state owned Ceypetco and Indian Oil Corporation to take up a 49 percent stake in 100 petrol sheds and petroleum storage and distribution infrastructure.

India's Bharat Petroleum has been trying to stake its bid, with the plan repeatedly scuttled by trade unions accusing the government of selling off state assets.

But the deal is likely to go through, with the government expecting US$ 84 m