Asia/Pacific News
Sri Lanka Bunker Industry Reports Supply Continuing Despite Economic Crisis
The Sri Lankan bunker market is continuing to operate as normal despite the country's ongoing economic crisis, according to local sources.
Sri Lanka has seen an economic crash and social unrest this year in the wake of surging fuel and energy costs. But the country's bunker suppliers are continuing supply as normal, local sources told Ship & Bunker last week, as well as doing what they can to support the local economy.
"Even though Sri Lanka is facing a crisis, the bunker business is the least impacted," one local market source said.
"We have had zero cancellations, and port-related activities are given priority.
"There are four players in the industry and all are backed by large conglomerates or groups, hence the impact is less.
"Our income is in US dollars, hence we are in a strong position with regard to managing our imports as well."
Another supplier noted local authorities were being helpful in keeping the bunker industry running.
"Port operations are going smoothly, as the country has identified the same as an essential element for the country's economy," the source said.
"We are getting high cooperation from Sri Lanka customs, Sri Lanka Ports Authority and the relevant ministries."
Bunker sales at Colombo have increased since the start of the year, one supplier said, with sales rising to about 48,300 mt in April from 46,200 mt in March, 45,700 mt in February and 43,500 mt in January.
Ship & Bunker indications show bunker prices have slightly declined compared to competing ports. VLSFO at Colombo has been at an average premium to Cochin of $12.50/mt this month, compared with an average premium of $28/mt in 2022 so far and one of $21/mt on average in 2021.
