• Queries motives of Sinopec, United Petroleum, R.M. Parks Inc., and whether connected to ‘black money’ smugglers

Former Minister of Petroleum and Petroleum Gas, and incumbent Opposition Parliamentarian, Attorney Chandima Weerakkody claimed that it is doubtful as to whether the multinational companies which are going to sign contracts with the Government to carry out petroleum related operations in the country are connected to certain individuals involved in black money smuggling.

Speaking to The Daily Morning yesterday (28), he said: “It is the Government that is fully responsible if the Ceylon Petroleum Corporation (CPC) is making losses. Despite this, we accept that the CPC needs to go through restructuring mechanisms in order to recover from the current situation. However, we do not see any way in which the country or the CPC would be benefited through the allowance of foreign companies to carry out petroleum related operations.” 

He said that when the relevant companies commence their operations, they will spend their own foreign exchange and import petroleum products, and that therefore, it is problematic as to how they hope to continue their operations in the current economic crisis in the country. He added that considering the fact that there is a shortage of United States dollars (US $) in the country and the fact that the companies concerned receive their income in Sri Lankan rupees, a problematic situation arises as to what is the real ambition of those companies. 

“These companies get their income in rupees when they carry out petroleum-related operations in Sri Lanka. After that, they have to convert those rupees into US dollars to continue their operations. However, in the face of the current shortage of US dollars, the problem is how to convert the rupee income into US dollars. The only thing that these companies can do by spending rupees is to buy properties like land in the country. Through that, the country may have harmful consequences in the long run,” he claimed.

When questioned as to whether he thinks that those companies are planning to invest in Sri Lanka without knowing about the situation such as the shortage of US dollars in the country, he said: “They are planning to invest knowing about the situation, and that is why we have doubts about these companies. It is even doubtful if these companies are connected to those who are involved in smuggling black money. The authorities should make the relevant explanations and clear these doubts,” added Weerakkody.

Speaking further, he said that the country should open doors for foreign investments, but that such should however be those that bring real benefits to the country. “I do not say that we should close doors for investments or discourage investors, but we should consider if the investments coming in bring about real benefits to our country. In this case, even if these companies will somehow convert their rupee income to US dollars, the bigger portion of it will go to the countries where these companies are based.”

The Minister of Power and Energy, Kanchana Wijesekera was not available for comment.

The Cabinet of Ministers recently granted approval to award licences to China’s Sinopec, the United Petroleum Company of Australia and R.M. Parks Inc. of the US in collaboration with Shell PLC to enter the fuel retail market in Sri Lanka. Wijesekera had stated that the energy committee and the other procurement committees had given their approval and recommendation to award these three companies the licences to operate in Sri Lanka.