Sri Lanka is intending to drastically cut back crude oil imports from Iran, as the June 28 deadline for sanctions imposed by the United States is drawing closer.
"Our efforts to finalize new arrangements ahead of the deadline were on track," Petroleum Minister, Susil Premjayantha said to The Island yesterday.
"In fact, we have no option, but to act swiftly and decisively to ensure an uninterrupted energy supply,"
Mr Premjayantha said the government will have to reach agreements with new suppliers to obtain the crude oil imports, which were previously purchased from Iran.
Questioned about the currency in which Sri Lanka would make payments for the remaining Iranian oil shipments, Mr Premjayantha said it would not be possible to pay in US dollars due to the sanctions.
"We’ll have to make payments in some other currency. We are working on that in consultation with the Central Bank. At the moment, the issue is how to bridge the shortfall in the supply of crude oil."
