- UAE, US supplies secured
- First of four shipments arrived Friday
- Comprehensive delivery schedule finalised
Sri Lanka has secured a series of crude oil shipments expected to sustain national fuel requirements through June, according to Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage, even as global supply chains remain under severe strain due to escalating tensions in the Middle East.
Speaking to The Sunday Morning, Dr. Neththikumarage said that the CPC had finalised a comprehensive delivery schedule to ensure uninterrupted fuel supply during the second quarter of the year.
Sri Lanka received a crude oil shipment on Friday (17). The vessel, which originated from the United Arab Emirates (UAE), carried approximately 97,500 MT of crude oil. Three additional shipments are scheduled to arrive by May.
Dr. Neththikumarage confirmed that an initial shipment was expected in the last week of this month, followed by two additional consignments next month.
“In the next month as well, two separate shipments will arrive, one in the middle and another towards the end, roughly 14 days apart,” he said, outlining the delivery mechanism designed to maintain consistent stock levels.
Providing further clarity on procurement arrangements, Dr. Neththikumarage said that one of the upcoming shipments was expected from the US, while the remaining deliveries from the UAE – Sri Lanka’s primary crude oil supplier – had also been secured.
He noted that these scheduled arrivals were expected to adequately meet the country’s fuel demand until June, offering a degree of stability amid ongoing uncertainty in international markets.
Prior to the arrival of the vessel on Friday, two shipments scheduled for 8 March and the first week of April had failed to reach Sri Lanka due to the deteriorating security situation in the region. The conflict has disrupted key maritime supply routes, particularly those serving Asia, complicating procurement efforts for oil-importing nations.
According to the CPC, following the last successfully discharged shipment on 11 March, securing additional crude oil supplies became increasingly difficult.
The crisis triggered sharp price escalations and logistical constraints, with global crude oil prices, previously in the range of $ 60–70 per barrel, surging dramatically, in some instances reaching as high as $ 170 per barrel.
This volatility has been largely driven by threats to critical global shipping corridors, particularly the Strait of Hormuz, which was effectively blockaded. Heightened security risks and war-related disruptions have forced vessels to reroute, increasing transit times, freight costs, and insurance premiums.
Despite these challenges, Sri Lanka has managed to secure crude oil at comparatively favourable rates. According to Dr. Neththikumarage, recent procurement agreements have been finalised within a price range of $ 71.99 to $ 113.29 per barrel, significantly lower than the $ 140–150 range observed in international spot markets during peak volatility.
He attributed this outcome to coordinated efforts between the Government and the CPC, as well as strengthened international engagement aimed at navigating supply disruptions and securing competitive pricing. The ability to procure fuel at such rates during a period of global scarcity, he noted, reflected both strategic negotiation and timely intervention by authorities.
The CPC’s delivery schedule also includes contingency planning, with staggered shipments ensuring that reserves are replenished at regular intervals rather than relying on single bulk consignments. This approach is expected to reduce vulnerability to sudden disruptions in supply chains.