The Ministry of Energy has taken steps to once again close the Sapugaskanda Oil Refinery from today.
The Ministry said the oil refinery will be closed as a result of difficulties in purchasing crude oil due to the prevailing foreign reserve crisis.
The management of the Ceylon Petroleum Corporation is reportedly prepared to resume operations at the Sapugaskanda Oil Refinery by the 30th of January, after obtaining the required crude oil.
The Energy Ministry said the purchase of alternative crude oil as an emergency purchase has also failed due to a shortage of foreign reserves, adding it has become difficult to purchase crude oil on credit basis as Sri Lanka’s credit rating has dropped.
The Ministry said the Singaporean company which was awarded the long term contract for the supply of crude oil to Sri Lanka, will commence the supply of crude oil from the 25th of January.
However, the Energy Ministry assured the public that the temporary closure of the Sapugaskanda Oil Refinery will not create an oil shortage in the country.