Sri Lankan fears continue to rise amid threat to oil imports
Tuesday, Feb 07, 2012 Filed Under :Planet Talk Instant News
People planning to call Sri Lanka should be aware anxieties are rising regarding the US-led sanctions on Iran that could stifle the country’s oil supply considerably.
Sri Lanka imported 93 per cent of its oil from the Middle Eastern country last year, and now faces the risk of that vital supply being cut off.
The US opposition to Iran has already impacted oil prices in Sri Lanka, which have risen against a weakened rupee.
The country’s sole oil refinery in Sapugaskanda produces 50,000 barrels every day, and can only refine Iranian oil and between three to four other oils that are also in shortening supply.
President Mahinda Rajapaksa called on officials to respond to the looming crisis, asking the US to come up with an alternative plan that could save the country’s oil supply.
Although the nation is in talks with Oman and Saudi Arabia to diversity its imports, oil from these countries would still need to be mixed with Iranian produce to make it viable in the Sri Lankan market.
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