Sri Lankan government calls for more players to import, export and blend lubricants
The local media has reported that the Sri Lankan government has invited more players to import, export and blend lubricants. The call is to be made through the announcement of a new licensing round with several entry barriers including prior experience that limits entry to existing foreign brands.
Sri Lanka now has 13 firms selling 22 brands of lubricants, with an annual demand of 64,485 kilo litres valued at Rs. 26.5 billion in 2017, reports state.
There is one domestic brand, Laugfs.
“With the view of creating healthy competition for quality lubricants, the GOSL has decided to invite Requests for Qualification (RFQ),” Sri Lanka’s Ministry for Petroleum has said.
Proposals have reportedly been called to set up blending plants or to import and sell lubricants, greases, marine lubricants (bunkers) and transmission oil.
According to reports, a company wanting to blend or produce lubricants and grease in Sri Lanka must have at least five years of experience in the lubricant business and show its capacity to invest a minimum of US$ 5 million.
A blending plant has to be built on a tentative approval.
“In this regard, the GOSL will convey its written intention to grant authorization, enabling the successful applicant to proceed with the construction of the blending plant,” the request for proposals has stated.
Sri Lanka’s decision to call for more players to import, export and blend lubricants is a lucrative business opportunity for foreign companies with experience in the oil and petroleum sector. Interested foreign companies could look at the request publicized by the Sri Lankan government and apply according to the given guidelines.
|Article Code :||VBS/AT/12092018/Z_6|