US’s retaliatory 25% tariffs: No direct impact on SL’s fuel supply

• Currently procuring fuel from companies registered in Singapore, India, China 
• No fuel shortages from US sanctions
• Prices could be affected by fluctuations

Sri Lanka no longer procures fuel from Iran and therefore will not be directly affected by US President Donald Trump’s announcement of retaliatory 25% tariffs on countries trading with Iran, Government sources reveal.

Speaking to The Sunday Morning Business, Ministry of Energy Secretary Prof. Udayanga Hemapala stated that Sri Lanka no longer imported or relied on Iranian fuel. 

He added that therefore the local petroleum sector would not be affected by the recent announcement by the US President imposing additional retaliatory tariffs of 25% on countries engaging in business with Iran.

Prof. Hemapala further revealed that, following due tender procedures, the Government was procuring fuel from companies registered in Singapore, India, and China at present, and that there was no longer any arrangement between Sri Lanka and Iran for the procurement of fuel.

“We don’t have any agreement or deal with Iran separately, nor do we have any agreements with any Iranian companies,” he stated.

Accordingly, he stated that they did not expect fuel shortages in the country arising from US sanctions, despite acknowledging that prices could be affected by fluctuations in the global market stemming from these recent developments.

Similar sentiments were expressed to The Sunday Morning Business by Ceylon Petroleum Corporation Managing Director Mayura Neththikumarage, who stated that Sri Lanka no longer sourced fuel from Iran, having stopped imports years ago. 

He added that therefore the recent additional US tariff would not affect the country’s fuel supply in any way.

On Monday (12), US President Donald Trump announced via his social media platforms that any country conducting business with Iran would be subject to a 25% tariff on trade with the United States.

Sri Lanka imports more than 90% of its fuel requirements, with annual petroleum import costs estimated at $ 4–5 billion. 

Source: The morning