By The Hindu Business Line

COLOMBO, OCT 27: Sri Lanka’s only refinery — Sapugaskanda — has been forced to shut its operation as US sanctions on Iran have taken a toll on Sri Lankan imports.

“Since August due to strict adherence to US sanctions, our letters of credit for imports have stopped being accepted,” Sri Lanka’s Petroleum Minister Susil Premjayantha said.

Sapugaskanda refinery with a capacity of 50,000 barrels a day came to be shut this week due to non arrival of crude supplies from Iran. The refinery is geared only to process Iranian crude.

“However we can resume the refinery operations when we receive 80,000 tonnes of Oman light crude by November 10.

Another 130,000 tonnes of Arabian crude would be due in December,” Premjayantha said.

Premajayantha told Parliament this week that Sri Lanka’s cumulative loss from ban on Iranian crude imports as a direct result from US sanctions was a staggering $1.2 billion.

 

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