Sri Lanka Eyes US Crude Oil to Balance Trade Deficit
Sri Lanka is exploring US crude oil purchases to address trade imbalances with Washington. This move precedes tariff negotiations with the Trump administration. The Ceylon Petroleum Corporation will test West Texas Intermediate crude for compatibility. Tariff reductions remain a focal point for Sri Lanka's export industry amid IMF economic recovery efforts.
- Country:
- Sri Lanka
Sri Lanka is taking steps to purchase crude oil from the United States as part of its strategy to mitigate trade imbalance issues with Washington, an official announced on Monday. The initiative aligns with the approaching August 1 deadline for tariff negotiations with the administration led by Donald Trump.
Janaka Rajakaruna, head of the state-owned Ceylon Petroleum Corporation, revealed that Sri Lanka plans to invite West Texas Intermediate (WTI) crude oil to participate in competitive tender bids. This decision follows the current practice of sourcing all crude oil requirements from the Middle East.
The US recently reduced tariffs from 44% to 30%, yet Sri Lanka's export industry remains unsatisfied. They urge continued negotiations, citing concerns about potential job losses and impacts on the nation's IMF-backed economic recovery.
(With inputs from agencies.)
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