The Ceylon Petroleum Common Service Union yesterday revealed that severe limitations at Sri Lanka s only refinery at Sapugaskanda had contributed to the rapid deterioration of the petroleum sector.
Union spokesman D. J. Rajakaruna said had previous governments upgraded the facility the country would have been in a better position to meet the unprecedented increase in the price of crude oil.
He said due to years of neglect on the part of successive governments, the aging refinery s capacity to produce petrol and diesel out of crude oil had fallen to less than 40 per cent. President Mahinda Rakapaksa s decision to secure Iranian investment to upgrade the facility would bring immense benefits to the country, he said, asserting failure to upgrade the facility and Indian Oil company s entry into the local market and expansion of its Sri Lankan operation had been at the expense of the country.
The bottom line was that the government wanted to give away highly profitable operations and services to LIOC, which would bring much needed revenue to Sri Lanka.