The Sri Lankan government has granted permission for three foreign companies to enter the country's retail fuel market and sell fuel below the approved price of the Ceylon Petroleum Corporation. The Ministry of Power and Energy has confirmed that contracts with China's Sinopec Company, Australia's United Petroleum Company, and Shell Company, along with the United States of America's RM Parks Company, will be signed by the end of this month, and operations are expected to begin a month after that.

The senior official at the Ministry of Power and Energy has noted that allowing the three foreign companies to sell fuel at a lower price could decrease the demand for Ceylon Petroleum Corporation's fuel, thereby reducing the government's monthly fuel bill of around US$ 450 million. The government hopes that each of the three companies will bring US$ 120 million worth of fuel to Sri Lanka per month.

While the decision may impact the sale of Ceylon Petroleum Corporation's fuel, the official has emphasized that it would be beneficial for consumers. The terms of the agreement require the companies to refrain from using local banks to finance fuel imports and to keep their profits in Sri Lanka for at least a year before taking them out of the country.