Sri Lanka to renegotiate private fuel company agreements, President says

President Dissanayake said the government will move to amend fuel supply agreements signed by previous administrations, which he characterized as constraining the Ceylon Petroleum Corporation's (CEYPETCO) ability to independently determine fuel prices. The President made the announcement while addressing a National People's Power (NPP) rally in Ibbagamuwa on October 11.

The President's remarks signal the government's intention to renegotiate terms that he believes have limited CEYPETCO's operational flexibility and pricing autonomy. According to the President, certain contractual conditions embedded in agreements with private fuel companies have effectively stripped the state corporation of pricing control.

The move represents part of the new government's broader approach to reasserting state control over key economic sectors. By revising these agreements, the administration seeks to restore what it views as essential decision-making authority to the national petroleum corporation, allowing it greater latitude in responding to market conditions and domestic fuel demands.

The government has not yet disclosed specific timelines or details regarding which agreements will be prioritized for revision or what revised terms might entail. The announcement comes as Sri Lanka continues navigating energy security challenges and efforts to stabilize its fuel supply chain.