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Sri Lanka Says No To IOC

By Indika Sri Aravinda

The Sri Lankan government has rejected an offer from the Indian Oil Corporation (IOC) to upgrade the facilities at the Sapugaskanda oil refinery.
Petroleum Resources Minister Susil Premjayantha said that the government will require USD 400 million to upgrade the Sapugaskanda refinery and USD 1.5 billion to build a new one. IOC had expressed interest in the government’s plans to refurbish the island’s only refinery that will cost USD 2 billion.
“We have expressed our interest,” Suresh Kumar the IOC’s Colombo chief had told the Indian media.
He said that Lankan IOC have had several rounds of correspondence with the government’s petroleum officials.
“It is premature to discuss details of our discussions,” Kumar said without elaborating further.  Sri Lanka has said that USD 2 billion would be needed to modernise the refinery at Sapugaskanda, a north Colombo suburb.
The refinery, built in 1960s was able to handle only Iranian and Saudi light crude. The 50,000 barrels per day refinery needs modification and Sri Lanka was talking to Iran in this regard in 2008.
Sri Lanka said that it was seeking alternative crude oil suppliers in view of the US sanctions on Iran coming into force around June this year.
Over 90 per cent of Sri Lanka’s crude oil requirements come from Iran.
Sapugaskanda needs modifications to handle supplies from non-Iranian sources, officials said.
The LIOC control one third of the island’s retail fuel market and has been operating in Sri Lanka since 2003.

6 Comments for “Sri Lanka Says No To IOC”

  1. Rajapassa

    Use rajapassa”s arse to refine pol gedi

  2. Eagle

    Even Srilanka found who is our unseen coverd enemy now , it is great. In 1980 one great man named Junious Richard Jayawardana who wanted to keep the status of Srilanka, second to Singapore understood this Indians behaviour, and wanted to clean the “Trash” dumped by India (During Sirima Bandaranayaka`s Time), not with the hands of Srilankans but by dirty Indians , but unfortunately some of our today`s high up politicians acted like “Japan Jabara” to full fill their cunning “Power Hungry Meniac” completely did not allow him to make it. Ultimately those guys today realise India given them a nice “Tokkak” just giving smoothe touh of their “Foolish Heads”.

  3. Mervyn

    At least Sri Lankan responsible officials has done their home work and had given the appropriate answer. Well done Sri Lanka, give it to Russia or China they were not back stabbers or lizards like the other who showed his real colours in a jiffy by listning to the world policeman. Good luck to Sri Lanka, even if you have to tighten the belt to survive.

    • mkv18april

      Who is the back stabber!!?
      Sri Lanka invited IOC to invest in SL during a time when no other country was willing to invest in SL. Its generosity of IOC to come and invest at that time.
      Now when things are better in SL. The SL Govt is not giving the right respect to them.
      Who is the Lizard here!?

  4. Betrayer

    SL is going down anyway (hopefully soon), no matter who gets it. Russian and China are Human rights abusers, so SL will feel well at home, but not for long.

  5. Never get these Indians involved in any of our projects.We had had enough with these misers.

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