Power and Energy Minister Kanchana Wijesekera yesterday said that a seven member Cabinet sub-committee has been appointed to call for prices and secure fuel purchases.
This Cabinet sub-committee headed by Ports, Shipping and Aviation Ministry Secretary K. D. S. Ruwanchandra comprises Power and Energy Ministry Secretary M. D. U. K. Mapa Pathirana, a representative from the Central Bank, a representative from the Treasury, a Deputy General Manager of the Bank of Ceylon, Managing Director of the Ceylon Petroleum Corporation.
“Although the CPC follows a tender procedure for the supply of fuel, there were no tenders being submitted. Therefore, the Minister said that a seven member committee had been appointed to call for prices and secure purchases in a different manner”, the Minister said.
Minister Wijesekera said that discussions were still under way between the Government of Sri Lanka and other Governments as well as companies to purchase fuel, adding that further discussions were being held with the Government of Russia as well for the purchase of fuel.
He also noted that Sri Lanka requires about $ 550 million to import fuel for next month’s fuel needs, but the Treasury has agreed to provide only US$ 100 million, leaving a shortfall of about US$ 400 million.
Sri Lanka owes US$ 735 million in unpaid bills to their suppliers who had supplied fuel over the past year. Therefore, these suppliers are reluctant to bid for tenders which is a challenging situation, said Wijesekara. He noted that fuel supply was not a simple process, adding that this amount was due to be paid to their suppliers for fuel supplied from July last year to now. Although the CPC follows a tender procedure for the supply of fuel, there were no tenders being submitted. Therefore, the Minister said that a seven member committee had been appointed to call for prices and secure purchases in a different manner. The Minister said that discussions have commenced to obtain another US$ 500 million for Phase III of the Indian Loan Scheme.
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