The Hon. Kumara Jayakody - Minister of Energy

¶ 01 Madam Presiding Member, the war that began with strikes by Israel and the US on Iran is now affecting the whole world, including our region and country. We are fully engaged in managing its impact. With key Middle Eastern oil producers drawn into conflict, a global energy crisis affects rich and poor nations alike.

¶ 02 As we were rebuilding a bankrupt economy and recovering from the “Dithwa” cyclone—our largest recent natural disaster—this new challenge is no small matter. If those now lecturing us had, during their administrations, planned for such contingencies—expanded storage for fuel and energy, upgraded Trincomalee tanks left from colonial times, or installed robust battery storage for renewables—we would have more room to maneuver and even help neighbours today. Instead, after presiding over failure and bankruptcy, they now instruct us on what to do.

¶ 03 We are acutely aware of people’s hardships and are working to minimize them. Some media try to provoke public anger for soundbites, but the people also know this is a global issue, not solely local mismanagement.

¶ 04 When the first reports of attacks emerged, queues formed as people filled tanks and stored fuel. We informed the public that stocks were sufficient, and queues subsided. We monitored developments: earlier 12-day escalations had de-escalated; this time too initial signals did not suggest a prolonged war, but when it intensified and we foresaw supply risks, we took the next steps—reintroducing QR-based controls. Some wanted immediate 0-litre caps, but we timed measures to minimize economic disruption while preparing to scale if needed.

¶ 05 About releases since March 1 to 19: Petrol 92 was issued at 133% above normal daily averages; Lanka Auto Diesel +51%; Super Diesel +181%; Petrol 95 +61%; kerosene +172%. Across all products, releases exceeded typical consumption by over 50%, while maintaining necessary control.

¶ 06 Internationally in March, prices rose sharply: Petrol 92 by 55%, Petrol 95 by 65%, diesel by 74%, crude by 40%. In our supply corridors, crude shipping and marine insurance costs have surged; these are key drivers.

¶ 07 On LPG: the previous long-term supplier ceased on-time deliveries; from January we changed the contract. Had we not done so, LPG from Oman would have been impossible now, and we would face acute shortages; India has cut restaurant LPG releases by 20%, while we are managing. A private supplier’s 20% shortfall is being covered by the State.

¶ 08 On storage capacity: Combined Muthurajawela and Kolonnawa capacity is about 450,000 MT (approx. 210,000 MT diesel; 161,000 MT petrol 92, etc.). We cannot fill to 100%; tanks require maintenance margins, must be cycled, and berthing capacity must be reserved to receive 35,000–40,000 MT parcels across multiple grades. Typically over 100,000 MT must be kept available for operations. Within these constraints we are maximizing stocks.

¶ 09 We will ensure uninterrupted energy—fuel and power—through the festive season. We have also had to redirect supplies to bulk buyers (industry), as private bulk suppliers were cut off by their principals; CPL has distributed nearly 300 bowsers to those sectors over the last few days.

¶ 10 We have frameworks for tourism, agriculture and other sectors; we do not foresee a severe macroeconomic impact as we are managing proactively. Let us move forward together; this is a global problem, not a local failing. I invite the Opposition to recognize this and cooperate rather than undermine.

¶ 11 Thank you.