ECONOMYNEXT – Sri Lanka’s domestic petroleum sales increased sharply in the first eight months of 2017 mainly driven by the demand from the power generation sector, the central bank said in its latest economic update.
Petroleum sales to the energy generation sector grew by 40.4 per cent during the first eight months of 2017 compared with the same period the previous year.
Petroleum sales to the transportation sector, which accounts for a share of 61.4 per cent of the total petroleum consumption in the island, grew by 6.6 per cent in the first eight months of 2017 from the previous year.
This was owing to the increased demand for petrol and diesel from the transportation sector with the vehicle population increasing rapidly in recent years.
Increased petroleum sales to the power generation sector was because of drought conditions prevailing in the country since mid-2016 and continuous disruptions to the operations of the Norochcholai coal power plant.
This resulted in an increased dependence on fuel oil-based thermal power generation, the report said.
The sale of furnace oil, a product that is mainly used in the energy generation sector, grew by 42.6 per cent during the period.
(COLOMBO, November 09, 2017)