• Says CPC has no relation with companies that have been sanctioned
• Notes SL does not buy LPG from Iranian sources

The recent round of US sanctions targeting companies and vessels allegedly involved in facilitating Iranian petroleum and Liquefied Petroleum Gas (LPG) exports will have no impact on Sri Lanka’s petroleum imports, the Ceylon Petroleum Corporation (CPC) confirmed yesterday (11). 

CPC Managing Director Dr. Mayura Neththikumarage said that Sri Lanka’s energy procurement channels remained unaffected, as none of the sanctioned entities or companies had any operational or commercial relationship with CPC suppliers.

“This sanction has been imposed on a company that has nothing to do with petroleum or liquid products like crude, diesel, or petrol,” Dr. Neththikumarage told The Sunday Morning.

“Litro Gas also has no relationship with the companies involved in the sanctions and never deals with them. This sanction on a Chinese refinery doesn’t have any impact on Sri Lanka’s Chinese investments or anything. It has nothing to do with Sri Lanka,” he added. 

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (9) announced a new wave of sanctions on more than 50 companies, individuals, and vessels accused of helping Iran export petroleum and LPG in violation of international restrictions. 

The Treasury said the measures were part of Washington’s broader effort to “degrade Iran’s cash flow” and restrict funding to groups the US designates as terrorist organisations. 

Among those newly sanctioned are UAE-based Slogal Energy DMCC and Markan White Trading Crude Oil Abroad Co. LLC, which the US Treasury accused of facilitating Iranian LPG shipments to South Asia since 2024. OFAC’s report noted that several consignments had reached “end users in Sri Lanka and Bangladesh,” though it did not name any Sri Lankan companies or Government entities involved. 

The CPC clarified that Sri Lanka did not import any petroleum or LPG products from Iran, nor from intermediaries linked to the sanctioned network. All of Sri Lanka’s petroleum imports are sourced through transparent tenders and government-to-government agreements with countries including Singapore, the UAE, India, and Malaysia.

The Government reassured the public that the sanctions would not affect domestic fuel availability or pricing, as Sri Lanka’s petroleum supply chain remained diversified and compliant with international trade standards. 

“Our procurement process strictly adheres to global compliance norms. We monitor all suppliers and shipping partners through internationally recognised verification systems to avoid any risk of sanctions exposure,” a senior CPC official who wished to remain anonymous said. 

While the sanctions mentioned shipments of Iranian LPG to Bangladesh and Sri Lanka, analysts noted that such references may simply reflect regional trade routes or transshipment activity, rather than direct involvement by local entities. 

Regional energy experts say the new US measures could impact certain South Asian intermediaries and shipping companies but are unlikely to disrupt Sri Lanka’s stable supply lines due to the island’s limited exposure to Iranian-linked networks.