In a bid to address the foreign exchange crisis in Sri Lanka and ensure a steady supply of fuel, the Ministry of Power and Energy has taken decisive action. Accordingly, an agreement was signed today at the Presidential Secretariat, between the Government of Sri Lanka and RM Parks Inc., a prominent international company operating in collaboration with Shell, marking a significant step towards securing a long-term contract for the importation, storage, distribution, and sale of petroleum products in the country.
In the presence of the President, Mr. Mapa Pathirana, the Secretary of the Ministry of Power and Energy, along with Mr. Justion Divis, Vice President of RM Parks Company, formally signed the agreement.
This development comes after the Ministry explored various strategies to overcome the challenges posed by the foreign exchange crisis and guarantee a continuous fuel supply to consumers.
The current economic situation has hindered the Ceylon Petroleum Corporation (CPC) and Lanka Indian Oil Company (LIOC) from importing fuel shipments as planned. Insufficient foreign exchange at the time of opening Letters of Credit and settling bills has exacerbated the issue.
Consequently, the Ministry sought solutions to mitigate these challenges, leading to the invitation of Expression of Interests (EOIs) from reputable petroleum companies.
Following a rigorous evaluation process, several companies were shortlisted and invited to submit detailed proposals. The Cabinet Appointed Special Committee (CASC) and the Technical Evaluation Committee (TEC) carefully scrutinized these proposals and recommended the awarding of contracts to the following companies, subject to negotiations: