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Market Chatter: Sri Lanka in Talks With Russia, China to Import Crude, Fuel

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Sri Lanka has held discussions with Russia and China for the potential purchase of crude oil and fuels to reduce supply shortages, Reuters reported Monday, citing Energy Minister Anura Karunathilake.

The island nation has had positive discussions with the two countries in the past couple of months although it is still negotiating prices with China and figuring out the means of payment to China, Karunathilake said. He did not give a specific timeline for imports however, the report said.

Sri Lanka aims to make use of the temporary US suspension of sanctions enabling purchases of Russian crude, and is prepared to import refined products from both Russia and China, the report said.

Its first objective, however, is to purchase one shipment from each country then explore the potential further imports, he said.

Sri Lanka relies on imports for all of its fuel requirements and has been severely impacted by the Iran war, which has resulted in a global energy supply crunch.

Authorities in the country raised fuel prices 40%, rationing its sale and declared all Wednesdays a public holiday to lower energy demand.

Singapore and India are the main sources of fuel for Sri Lanka, with crude oil coming mainly from the United Arab Emirates. Karunathilake said fuel shipments have already been secured until August, primarily from Singapore via tenders, Reuters said.

has reached out to the Sri Lankan Energy Ministry for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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