Sri Lankan gov't approves proposal to open retail fuel market to foreign companies

COLOMBO, June 28 (Xinhua) -- Sri Lanka's cabinet of ministers has approved a proposal to allow companies from oil-producing nations to import oil and start retail operations in Sri Lanka, the Department of Government Information said on Tuesday.

The proposal was tabled by Minister of Power and Energy Kanchana Wijesekera, according to a statement released by the Department of Government Information.

The statement said that at present 90 percent of Sri Lanka's fuel supply is through the Ceylon Petroleum Corporation, and the remaining 10 percent by Lanka IOC, and it is obvious that several other companies must get involved in fuel distribution in the country.

Given the severe foreign exchange crisis faced by Sri Lanka, the government believes that entering into agreements with foreign companies which can use their own funding to import fuel will be a solution to fuel shortages, the information department said.

Sri Lanka has been facing crippling fuel shortages and prices of fuel have increased four times so far this year.