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Wednesday, October 7 2026
Wednesday, October 7 2026
MONETABRIEF – The market share of Sri Lanka's Ceylon Petroleum Corporation has soared as other distributors cut back supplies due to controlled prices, Minister Anura Karunathilaka said.
Private players had reduced supplies saying their costs were above the subsidy given by the government to keep retail prices below world market costs.
The CPC had a market share of 50 to 55 percent before the price controls.
"The market share has risen to 77 to 80 percent," Minister Karunathilake told parliament.
Players Ration Fuel Outlets Rationed
The Ministry had no powers to give directions to the private firms, but the Secretary had written to them to ensure that there is no market disruptions, he said.
"Because action was taken to ensure that the local prices did not go up in line with world market prices, the losses caused to companies had resulted in this problem," Minister Karunathilake said.
"They are asking to raise the local prices to world market levels. Because we cannot do it, we have taken steps give them a 70 rupee subsidy for diesel the next three months. But because they are still making losses, they have made some limitations to supplies to the market.
An order to sell below costs, is similar to expropriation, observers say.
The Ministry could issue orders to the firms to maintain minimum stocks based on the contracts signed with the government, Minister Karunathilake said.
"What we can do is to increase supplies by the CPC and reduce the problem to some level," he said.
"If this situation continues we will take legal advice and take action."
Sri Lanka's central bank busted the rupee in 2026, mainly by monetizing a balance of payments and dollar assets of banks, and repudiated its note issue, and amplified the shock of global prices by busting the rupee from 300 to 330 to the US dollar. (Colombo/Oct07/2026)
| 3 month bill | 9.25% | 5bp ▲ |
| 12-m bill | 9.95% | 2bp ▲ |
| Gold (Ounce) | $4602 | - - |
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