CB shoots down proposal to sell fuel for dollars at selected outlets

The Central Bank had blocked a proposal to sell fuel at selected gas stations for foreign currency, the Minister of Power and Energy, Kanchana Wijesekera said Sunday.

The Minister told the media that there was a proposal that a few gas stations be allowed to sell fuel for US dollars.

However, the Central Bank Governor told the Ministry that according to Lankan regulations, dollars could not be used for internal retail transactions.

The Bank was also fearful that it would further encourage the underground money transfer system, known as Undiyal, the Minister told the media.

Companies have already been given the opportunity to buy fuel, using US dollars, from the Ceylon Petroleum Corporation (CPC), and companies engaged in bunkering, the Minister said.

“SriLankan Airlines also pays us in US dollars and CPC has collected about 20 million US dollars from foreign exchange denominated sales. About half of that came from SriLankan Airlines,” he told the media.

Sri Lanka has been facing crippling fuel shortages since the beginning of this year, and prices of fuel have been increased four times in 2022.