Sri Lanka currently possesses a
very old refinery in Sapugaskanda, that refines about 30% of its oil
requirements from crude, and purchases the rest of its requirements as refined
petroleum. This is hugely costly and very inefficient and a further hit on the
import bill. The massive increase in motor vehicles to this country in the past
10 years has meant that the usage in that period has tripled with no relief in
sight for a home grown solution. See the link below for the problems we
continually encounter, when our importers cannot even ensure that the petroleum
conforms to basic requirements.
Another major issue has been that
our current refinery can only refine Iranian Light Sweet Crude, and not other
types of crude oil. The recent Iranian oil embargo, where Sri Lanka received
special treatment due to this limitation, affected our ability to fulfill our
basic requirements.
There have not been ANY reports
of an impending solution to this crisis, when we have so many unwanted projects
for which we have borrowed money at exorbitant interest rates, and which are
unlikely to give a return on investment in the short term, The still
non-functioning Norochcholai Coal Power Station, Hambantota Port and the
Mattala Airport to name a few. ( was not
opposed to Norochcholai, but to what turned out to be old outdated technology
with second hand me downs from China causing the cost overruns and production
inefficiencies & 25 breakdowns)
I know that in the UNP list of
priorities should they form a Govt. this comes very near the top of what will
be carried out and feasibility reports and locations are currently being
studied with room for expansion, not just for current requirements to ensure an
efficient plant where all by products can be used with the latest technology.
Even financing at very low rates of interest is being sought, at less than half
the rates of interest the Current Govt. is borrowing from China’s banks with a
serious question of the ethics of the transactions.
Once the refinery is in full
operation there will be surplus initially for export, and will save the country
US$2B per annum in the import bill. You can just imagine why this govt. does
not like that!!!! There are huge kickbacks in the current crude purchases and
interested parties do not even want the possibility of their gravy train being
disrupted by even talk of a new refinery.
I implore the Govt. to work immediately
at solving this and not wait for a UNP Govt. to solve it, in the NATIONAL interest
if they really are patriotic!!!
1 comment:
if they wait for a UNP government to solve it, the world would have moved onto new sources of energy.
sri lanka should be taking the lead in alternative energy since energy prices are already high in SL. get a head start on all other countries and become the hub of alternative energy innovation that can spread throughout the world. forget copying silicon valley for software. make a kelaniya valley for alternative energy
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