Govt. seeks fresh investors for lubricant market

Thursday, 25 August 2016 00:09 - - {{hitsCtrl.values.hits}}

By Chamodi Gunawardana

In a bid to expand the country’s lubricant market, the Government will be calling applications from interested investors to enter the market by applying for lubricant licences under the control of Petroleum Resources Development Ministry.

Cabinet Co-Spokesman Minister Gayantha Karunathilake addressing the Cabinet briefing yesterday said Cabinet on Tuesday approved the proposal made by Finance Minister Ravi Karunanayake in this regard.

According to the approved proposal, the Government will increase the biannual fixed registration fee and licence fee from Rs. 1 million to Rs. 2 million. In addition, the maximum registration fee will be increased from Rs. 5 million to Rs. 6 million with immediate effect.

In order to maintain the quality of lubricants, Karunathilake said the Sri Lanka Standards Institute (SLSI) would issue national level quality certificates to both imported and locally-blended lubricants, while the Sri Lanka Public Utilities Commission will act as the regulator of the entire industry.

Furthermore, the Government will direct the Consumer Affairs Authority (CAA) to enact necessary legislation required to provide quality lubricant products to the public.

Karunathilake said the Sri Lanka Customs and Department of Import and Export Control would strictly impose guidelines issued by the Ministry to monitor the process of lubricant imports and exports.

“Currently 13 companies including Ceylon Petroleum Corporation and Lanka Indian Oil Company are engaged in the lubricant industry. However, Sri Lanka could not gain the full benefits of the industry due to issues such as non-issuance of new licence, not amending the biannual registration fees and licence fees since 2006, and non-establishment of an independent regulator. The Government can develop the lubricant market in line with Karunanayake’s proposals,” he added.