The United States is yet to grant any concessions to Sri Lanka on fuel imports from Iran, despite a significant reduction of purchases from that country.“We are encouraged by the steps that Sri Lanka has taken, but no final decision has yet been made by the administration,” a US embassy spokesman said.
He said External Affairs Minister G.L. Peiris who met US Secretary of State Hillary Clinton late last month had explained Sri Lanka’s efforts to reduce its dependence on Iranian crude oil.
Petroleum Resource Minister Susil Premajayantha had earlier said Sri Lanka expected a US waiver of sanctions on imports of Iranian crude oil as Sri Lanka had taken steps to cut down imports by 38 per cent, switching to fuel from Oman and Saudi Arabia.
Sri Lanka has taken steps to reduce Iranian purchases to eight cargoes per year from 13, buying four cargoes from Oman and one from Saudi Aramco.
Sri Lanka has made the case that the Sapugaskanda oil refinery could mainly refine only crude imported from Iran and therefore consessions should be given to Sri Lanka.
“Our refinery at Sapugaskanda can process only a limited range of crude oil similar to Iranian crude oil. It is restrictive as the technology cannot accommodate several other types,” Petroleum Ministry Secretary R.H.S. Samaratunga said.
In terms of a US law, sanctions are imposed on countries whose banks carry out oil-related transactions with Iran’s central bank. The US government can offer exemptions to countries that show they have “significantly” cut their purchases from Iran and has done so in the case of Japan and 10 European Union countries. |
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