Malaysia’s Hyrax Oil Sdn. Bhd which is already marketing its lubricants in Sri Lanka in collaboration with the Ceylon Petroleum Corporation (CPC) is preparing to establish a lubricant oil mixing plant in Sri Lanka with a USD 10 million investment, said the head of Malaysia’s EXIM Bank.  

EXIM Bank Malaysia President Dato’ Adissadikin Ali told adaderanabiz.lk that discussions have been held with the Sri Lankan authorities and that the mixing plant would be set up in Colombo.

Last May the Cabinet approved the setting up of this lubricant mixing plant in Colombo in which the CPC is to invest along with the Malaysian company.

The finished products of this plant are expected to me marketed locally as well as overseas.

By further widening the Lubricant market in Sri Lanka the Ministry of Petroleum and Petroleum Resources Development is preparing to afford the opportunity for 15 to 20 companies to establish themselves in the island.

There are 13 companies already engaged in marketing lubricants in Sri Lanka while around another 20 companies have applied to enter this market.

However, during a recent seminar in Colombo, while expressing his views, Senior Vice Chairman of Lanka India Oil Company (LIOC) Sauman Ganguly said with so many companies entering Sri Lanka which has such a small lubricants market would be a disadvantage to their businesses.

Even in India with a massive lubricants market there are only around 25 companies, he added.

Another of his arguments was that since there is no proper regulation in Sri Lanka’s lubricant market such a large number of companies competing within such a small market could pave the way for low quality products to enter the market.

Ganguly pointed out that there are only two companies involved in Sri Lanka’s petroleum sector and less than 10 companies in the telecommunications sector in Sri Lanka.