Sri Lanka to lease 450 state-owned service stations alongside Shell
The government has approved three oil companies from China, the United States and Australia to operate the sites in collaboration with the mobility company.
Sri Lanka has granted approval for three oil companies from China, the United States and Australia to lease 150 service stations for each company in collaboration with Shell.
The news was confirmed by the Ministry of Energy and comes after the President, Ranil Wickremesinghe, decided to sell the government's stake in seven key state owned companies. This sale includes fuel retailer Ceylon Petroleum Corporation, which operates 1,190 fuel retail sites.
According to a report by news site Economy Next, talks for the entry of foreign players into the local market began in June 2022, amidst the fuel supply struggle triggered by the economic crisis.
“The 3 companies will be allocated 150 dealer operated fuel stations each which are currently operated by CPC and they will be granted a license to operate for 20 years to import, store, distribute and sell petroleum products in Sri Lanka. A further 50 fuel stations at New locations will be established by each selected company,” said Wijesekera.
Sri Lanka’s fuel retail market is currently controlled by CPC, which operates 90% of fuel distribution while the rest is handled by Lanka IOC.
