Sri Lanka turns to India for diesel, furnace oil for power generation

Colombo, March 28 (Daily Mirror) - President Anura Kumara Dissanayake is reported to have sought supplies of diesel and furnace oil from India for power generation, a highly placed source said.

The Indian authorities are currently considering the request for the supply of such oil required for Sri Lanka’s power generation. The request was reportedly made when the President had a telephone conversation with Indian Prime Minister Narendra Modi recently regarding the current situation.

The proposed supply is in addition to 38,000 metric tons of fuel to be supplied by India today through the Lanka Indian Oil Company (LIOC). That shipment is expected to come from the Paradip Refinery of the Indian Oil Company. Commissioned in 2016, it is situated in Paradip, Jagatsinghpur District in the State of Odisha.

According to a top source, LIOC purchases fuel for Sri Lankan business operations from the suppliers in the Middle East or Singapore. However, the suppliers from the Middle East have now been disrupted due to the war. As a result, the latest shipment of diesel and petrol have been obtained from its refinery in India as an emergency requirement. LIOC is responsible for one-fourth of fuel trading in Sri Lanka.

Meanwhile, fresh attention is now being paid for the development of the Trincomalee Oil Tank farm for energy storage.

There are 99 tanks. Of them, 14 tanks have been handed over to IOC, and 24 to the Ceylon Petroleum Corporation. In 2022, the remaining 61 tanks were vested with a joint venture between IOC and CPC called Trinco Petroleum Terminal (Pvt) Ltd.