It has been revealed that Sri Lanka’s bunkering services to ships and supply of aviation fuel to aircraft have weakened due to the heavy competition in this sector from India and Singapore.

While releasing latest data in this regard the Central Bank of Sri Lanka says though the charges in this sector are high both these sectors had shown a decline last July.

Due to this reason, Sri Lanka’s petroleum products exports in July 2014 has decreased by 6.6 percent and earned a profit of USD 28.3 million compared to the same period last year.

While Sri Lanka considers that there are great opportunities to develop the ship bunkering industry at Hambantota, a new fuel tank system too was declared open last June.

There are 14 fuel tanks in this system eight among these are being used by the Sri Lanka Ports Authority for ship bunkering. Three have been obtained on lease by the Ceylon Petroleum Corporation to supply aviation fuel for aircraft.

Hence, it is crucial that Sri Lanka provides a very cost effective service in this industry due to the stiff competition by India and Singapore.