• Fuel stocks limited to 33 days; gas storage covers barely one week
• No separate strategic reserve as Lanka relies on rolling shipments
• Unveils Rs 30 b plan to expand storage, pipelines and refinery output

President Anura Kumara Dissanayake yesterday (3) acknowledged in Parliament that Sri Lanka lacks sufficient storage capacity to maintain two to three months of fuel reserves, identifying it as the country’s principal structural weakness amid rising global uncertainty.

Delivering a special statement on the economic implications of the Middle East conflict, the President revealed that Sri Lanka does not possess a dedicated strategic fuel reserve. Instead, operational and reserve stocks are held within the same facilities, requiring precise shipment scheduling and strict management.

Excluding the IOC facilities in Trincomalee, total storage capacity at Kolonnawa and Muthurajawela stands at approximately 150,000 metric tonnes. At the onset of the crisis, around 103,000 metric tonnes were in storage. Current diesel stocks are sufficient for 33 days, while petrol stocks stand at 28 days, rising to nearly 40 days with the arrival of a 35,000 metric tonne shipment due on the 7th or 8th.

Aviation fuel stocks are sufficient for 49 days. Daily national fuel requirements amount to about 1,800 metric tonnes, of which 1,080 metric tonnes are produced by the Sapugaskanda refinery, with the balance imported. Crude oil stocks are sufficient for 26 days, with a further shipment at sea expected to provide an additional 18 days, ensuring refinery operations could continue for 44 days even under a worst-case scenario.

However, the gas sector remains more fragile. Total gas storage capacity is just 8,000 metric tonnes against a daily requirement of between 1,000 and 1,200 metric tonnes, meaning only about one week’s supply can be stored. Emergency Regulations were re-imposed to enable private sector suppliers to temporarily divert stocks to the domestic market. A shipment of 100,000 new Litro cylinders is due on the 12th.

To address these vulnerabilities, the President announced a Rs. 30 billion infrastructure overhaul. Plans include an 86,000 metric tonne storage complex in Kolonnawa costing nearly Rs. 5 billion, a 40,000 metric tonne expansion in Muthurajawela costing Rs. 3.5 billion, refurbishment of four 10,000 metric tonne tanks in Trincomalee with a Rs. 7.37 billion pipeline system, replacement of 90-year-old pipelines at a cost of Rs. 12.8 billion, and a refinery expansion from 50,000 to 100,000 metric tonnes, the first increase in capacity in 47 years.

“We hope for the best and prepare for the worst,” the President said, insisting that while global events are beyond Sri Lanka’s control, preparedness is not.