Sri Lanka’s Cabinet has approved two contracts worth a combined Rs. 827 million for the supply of lubricating oil to the Sapugaskanda power station for 2026/27, Cabinet Spokesperson Dr. Nalinda Jayatissa said on Tuesday.
Lanka IOC PLC, the local arm of Indian Oil Corporation, secured the Sapugaskanda Plant A contract to supply 316,000 litres of lubricating oil for Rs. 392.47 million (inclusive of VAT). Chevron Lubricants Lanka PLC was awarded the Plant B contract to supply 304,000 litres for Rs. 434.86 million (inclusive of VAT).
The procurements cover one year of operation at the Ceylon Petroleum Corporation’s Sapugaskanda refinery and its associated thermal power station — the country’s only domestic refinery, which has run at reduced throughput through the recent Middle East shipping disruption. The lubricant tenders are routine procurement decisions but come as the wider CPC operation absorbs sharply higher crude import costs — the fuel import bill rose from US$186 million in January to US$521 million in May — and the Treasury manages substantial per-litre losses on retail fuels.
Source: EconomyNext.
