United Petroleum of Australia to enter Sri Lanka’s retail market from mid-year
Daily FT: Power and Energy Minister Kanchana Wijesekera has recently revealed that United Petroleum of Australia has finalised an agreement with the Power and Energy Ministry to venture into petroleum retail operations in Sri Lanka.
The announcement comes following last month’s signing of the agreement between the two parties.
“They plan to sign the agreement with the BOI and obtain the license to operate by mid this year,” he said via ‘X’.
Wijesekera said United Petroleum Group CFO Nigel Simonsz visited the Ministry to provide an update on the company’s plans and outlined the schedule for commencing retail operations.
United Petroleum is slated to operate through 150 fuel stations allocated to them across the country.
Australia’s United Petroleum is the third international company to enter into the market.
OSL take:
The opening of Sri Lanka’s retail fuel market has presented a new business/investment opportunity for foreign businesses/investors. Following the decision to open the market, there has been three new players entering the local fuel retail business indicating the growing business potential in Sri Lanka’s energy industry. The ongoing economic activities in the country have increased the demand for energy in the market and this demand is likely to see a further growth with Sri Lanka fast becoming a regional hub. Sri Lanka’s energy industry therfore presents new business/investment opportunities given the steady growth in economic activities. The profits recorded by the Lanka Indian Ocean Company (LIOC), which was the first foreign player in the market, is a clear indication of the business potential in operations in Sri Lanka. With the continuing expansion in Sri Lanka’s energy industry, foreign businesses/investors could explore these opportunities as well as propose new projects related to the industry.
| Article Code : | VBS/AT/20240326/Z_3 |