United Petroleum Lanka has reportedly decided to cease operations in Sri Lanka, Sunday Lankadeepa reported. While an official confirmation is yet to be made, Ceylon Petroleum Corporation (CPC) Managing Director Mayura Netthikumara has stated that since January 2025, the CPC has taken over operations at all United Petroleum-run fuel stations.
The Australian energy giant entered the Sri Lankan market in August 2024, having invested $27.5 million under a 20-year agreement with the government. However, citing dissatisfaction with operational conditions and an inability to meet contractual obligations, the company halted fuel imports on December 19, 2024, and has since been engaged in negotiations with the government.
In January, employees speaking anonymously to the Daily FT suggested that the company was preparing for a full exit, stating that operational restrictions prevented United Petroleum from functioning as initially promised. Despite its ambitious expansion plans, only 64 dealers partnered with the company, with many others reportedly hesitant due to concerns about reliability.
United Petroleum’s exit marks a setback for efforts to diversify Sri Lanka’s fuel retail sector, as it was among three international players granted long-term licences in 2023 to boost competition and attract foreign investment. (NewsWire)
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