Press Release

Fri, Mar 23, 2012, 02:05 am SL Time, ColomboPage News Desk, Sri Lanka.

Mar 23, Colombo: Sri Lanka, affected by the sanctions imposed by the United State on Iranian oil, has entered into an agreement with Oman to buy oil from that country way ahead of the US deadline.

Chairman of the Ceylon Petroleum Corporation Dayananda Vidanagama Arachchi on behalf of Sri Lanka and Chairman of the Oman Oil Corporation Nasheer Al Jasmi have inked the agreement Thursday at the Petroleum Ministry, the state-run radio reported.

The agreement was signed in pursuant to a discussion held by an Omani delegation currently on a visit to Sri Lanka with the Minister of Economic Development Basil Rajapaksa and the Secretary to the Treasury Dr. P. B. Jayasundara Thursday.

Meanwhile, the Petroleum Corporation has also entered to another agreement with Vietnam to buy petroleum from that country.

Petroleum Ministry officials have reportedly said that Sri Lanka plans to stop crude oil imports from Iran from March 29, ahead of the US June 28th deadline.

Sri Lanka depends almost entirely on Iran for its crude oil supplies and the country's only refinery at Sapugaskanda that processes 50,000 barrels per day can only process Iranian crude.

Sri Lanka recently held discussions with Oman and the oil-rich Gulf country has assured its help for Sri Lanka to meet its gas and oil needs in the event of a fuel crisis brought on by the United States sanctions on Iran's oil exports.