Sri Lanka to allow more lubricant marketers
Sri Lanka will soon grant more licenses to allow companies to sell lubricants on the island, officials said. Sandya Wijebandara, additional secretary of Sri Lanka’s petroleum ministry, told a business forum in Colombo that three companies have already applied to start dealerships.
Wijebandara said more applications were expected by the deadline. ”We are ready to license any number of players who meet the criteria,” she said. There are expectations that at least 10 other players may enter the industry.
Soumen Ganguly from Lanka IOC, a unit of Indian Oil Corp., said Sri Lanka only had a 50,000 metric ton a year market and already there are 10 players. By comparison, India has a 1.3 million ton market and there are 25 companies, he said. He felt it may be difficult to do business with 23 players in Sri Lanka. Though Sri Lanka’s Public Utilities Commission acts as the regulator for lubricants, it lacks the ability to prosecute those who sell low quality oils, Ganguly said.
Currently, Chevron, Lanka OIC and state-run Ceylon Petroleum Corp. are among the front-runners to receive the new licenses.
PUCSL Director General Damitha Kumarasinghe cited the benefits of increased competition.
(November 26, 2013)
