Lanka contacts Russian firm for crude oil: Minister

Colombo: Sri Lanka has reached out to several companies suggested by Russia’s embassy in Colombo to buy crude oil, Energy Minister Kanchana Wijesekera said on Sunday, in an attempt by the debt-ridden island nation to get oil on credit to keep its only oil refinery running.

Wijesekera told the media that the Russian ambassador in Colombo “asked me to send the replies of the company, and he will also intervene in the process”. The minister said he had replies from the Russian companies suggested by the ambassador, Sri Lanka’s Economy Next news portal reported.

“Also we have sent the message to the Sri Lankan Ambassador in Russia, Janitha Liyanage,” the minister said, adding that the process was taking time. Sri Lanka has already bought one shipment of Siberian crude from Dubai-based Coral Energy in the international market, officials have said.

However, the Russian state companies are reportedly giving crude at lower prices to countries that can afford to pay. Sri Lanka’s sole refinery is now running with the last Siberian crude shipment. Sri Lanka is currently facing its worst economic crisis since independence from Britain in 1948. Sri Lanka’s oil bill has risen to USD 550 million a month by June 2022 and the energy ministry has been talking to the central bank to get dollars. —PTI