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Sapugaskanda Oil Refinery to resume production shortly

28 May 2022 - {{hitsCtrl.values.hits}}      

By Sandun A. Jayasekera

The Sapugaskanda Oil Refinery would resume production shortly as a crude oil tanker has arrived at the Port of Colombo and demurrage to the tune of US$ 75 million has been paid to unload crude oil, government spokesman, Transport, Highways and Mass Media Minister Bandula Gunawardana said.  


The government has also decided to obtain a series of short-term loans to procure petroleum products for the rest of the year under the assistance of  Export-Import Bank of India, he added.  


“Action has already been taken to obtain a short-term loan facility of US$ 500 million with the assistance of the Export-Import Bank of India as well as another loan facility of US$ 200 million under the assistance of the State Bank of India in order to purchase petroleum products required by the country,” Minister Gunawardana noted.  
“Furthermore, Sri Lanka will also obtain a series of short-term loan facilities worth another US$ 500 million with the assistance of the Export-Import Bank of  India in order to purchase petroleum products for settling the foreign exchange shortage existing at the moment to import fuel.  


Sapugaskanda oil refinery suspended operations by the CPC on March 20th due to the failure to import crude oil owing to the foreign exchange shortage.   

  • A short-term loan facility of  US$ 500 million from Export-Import Bank of India and  another loan facility of US$ 200 million from the State Bank of India to be obtained to purchase petroleum products