News
Oil from India on G-G basis for two months, no tender
View(s):- Fuel purchase requests receive positive responses from India, Russia
By Damith Wickremasekera
The government plans to forego stipulated tender procedures to secure fuel supplies for April and May from India on a government-to-government basis, a senior minister said.
The decision has been taken in view of the worsening global energy crisis due to the ongoing conflict in West Asia. The conflict has disrupted the global fuel supply chains and impacted production, Foreign Affairs Minister Vijitha Herath said.
The proposal for the G2G fuel purchase will be presented to the cabinet shortly, he said.
This would mean changing the laid-down procedure for making fuel purchases, such as calling tenders and evaluating the bids. The initial purchase will be from India.
Minister Herath had discussed the matter when he had official talks with Indian External Affairs Minister S. Jaishankar in New Delhi on March 6 and followed it up with a telephone conversation upon his return.
He said India had responded positively, and as a follow-up action, Sri Lanka forwarded to India the country’s requirements for diesel, petrol and furnace oil for April and May.
The estimated quantities were drawn up by the Ceylon Petroleum Corporation (CPC).
Meanwhile, the government is also exploring a similar arrangement with Russia.
Minister Herath met with Russian Ambassador Levan S. Dzhagaryan on Thursday along with Deputy Finance and Planning Minister Anil Jayantha Fernando, Ceylon Petroleum Corporation Chairman D. J. Rajakaruna and other officials.
The ambassador had agreed to immediately inform Moscow of Sri Lanka’s request. He has since been in touch with the Russian energy minister, who has said that arrangements will be made to provide the necessary fuel stocks.
The only matter to be resolved is in which currency the payments can be made. In this regard, the government has informed the Central Bank Governor Nandalal Weerasinghe to discuss and resolve the matter. Russia began shifting towards national currencies in foreign trade after its US dollar and euro accounts were frozen by Western countries following the outbreak of the Ukraine conflict in 2022.
Sri Lanka’s ambassador in Russia, Shobini Gunasekera, will meet with Russia’s Deputy Energy Minister tomorrow to advance the talks, the Sunday Times learns.
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