Cash-strapped Sri Lanka has signed a long-term agreement with Chinese oil and gas giant Sinopec on important storage, distribution and sale of petroleum products in the island nation, President Ranil Wickremesinghe’s office said on Monday.
The deal with Sinopec– a state-owned Chinese company –was reached months after the two sides commenced their negotiations and Sri Lanka approved a proposal in March to liberalise the fuel retail marketing in the country with more players from China, Australia and the US.
The island nation’s fuel retail market was a state monopoly under the Ceylon Petroleum Corporation (CPC) till 2003 when the Indian Oil Company (IOC) was allowed to operate.
