Sri Lanka secures Russian oil supplies - minister

Sri Lanka has reached an agreement with Russia to purchase crude oil, with the first deliveries expected in mid-April, according to the country's Transport Minister, Bimal Rathnayake. This deal comes amid an energy crisis spurred by the Middle East conflict, which has disrupted supplies to the island nation. Rathnayake told TASS that the US-Israeli war on Iran has severely impacted fuel imports, making energy a top priority for Sri Lanka.

The minister detailed that senior Russian officials, including Deputy Energy Minister Andrey Rudenko, recently visited Sri Lanka to negotiate the oil supply agreement. Rathnayake stated that, at the political level, almost everything has been finalized, although technical and financial issues are still being discussed at the company level to facilitate transactions. He also emphasized the need for an efficient logistic system for crude imports, despite Sri Lanka's existing tea exports to Russia.

Meanwhile, Mayura Neththikumarage, a top official at the Ceylon Petroleum Corporation (Ceypetco), noted that Sri Lanka has only two locations for unloading fuel, adding complexity to operations. However, he assured that fuel shipments for April and May have been secured, and prices might decrease marginally in June. Historically, Sri Lanka has sourced most of its crude from the United Arab Emirates, while refined petroleum products are imported from India and Singapore.

This agreement aligns with Russia's efforts to become a key energy partner for South Asian nations, such as India, Pakistan, Bangladesh, and Sri Lanka, following the outbreak of the Middle East conflict. In 2024, bilateral trade between Russia and Sri Lanka stood at $700 million, highlighting the growing importance of this economic relationship. Colombo has implemented measures like fuel price hikes and rationing to address supply disruptions.