Sri Lanka will allow airlines to import their own fuel, Power and Energy Minister Kanchana Wijesekera said as the country grappled with the worst currency crisis in the history of its soft-pegged central bank.
Sri Lanka’s state-run Ceylon Petroleum Corporation was unable to import enough aviation fuel in 2022 as money printing created forex shortages, forcing airlines to top up at neighboring countries or bring extra fuel, pushing up ticket prices.
Sri Lanka’s new domestic airline Fits Air is importing their own fuel. This week parliament voted to liberalize the sector by changing the country’s petroleum law.
“We gave companies permission to import oil,” Minister Wijesekera told parliament. “After we liberalize the petroleum sector any airline would be able to import their own fuel.
“We will give our storage facilities and pipelines for a fee.”
Minister Wijesekera said CPC has already started earning service fees.