Sanctions Window Pressures SL’s Fuel Talks with Russia

By Ceylon Today -March 29, 2026 By Sulochana Ramiah Mohan

Sri Lanka is racing to secure urgent and long-term fuel supplies from Russia, as the United States has temporarily eased sanctions on Russian oil shipments already at sea until 11 April, creating a narrow and uncertain window for oil imports to Sri Lanka.

While Moscow has signalled its readiness to supply petroleum products immediately, officials on both sides also spoke and cautioned that supply continuity beyond the deadline remains constrained by looming sanctions, as well as unresolved banking and financial arrangements.

The temporary 30-day waiver, introduced to stabilise global energy markets amidst the Iran-related supply crisis, applies only to oil cargoes loaded before 12 March 2026.

Sri Lankan officials engaged in ongoing discussions with Russian counterparts have raised concerns over how fuel supplies can be sustained if restrictions are reimposed after 11 April.

Sources indicated that while there is scope to secure short-term shipments within the waiver period, longer-term arrangements remain uncertain due to difficulties in processing payments and securing financial channels under sanctions. Further negotiations are expected to focus on ironing out these mechanisms.

Talks on energy cooperation between Sri Lanka and Russia commenced last week in Colombo, with the Russian delegation affirming its willingness to support Sri Lanka’s fuel requirements. Discussions have also explored the possibility of a longer-term supply agreement aimed at strengthening energy security.

The Russian delegation is led by Deputy Energy Minister R. Marshavin and Russian Ambassador to Sri Lanka Levan Dzhagaryan, while the Sri Lankan side includes Deputy Minister of Finance and Minister of Labour A.J. Fernando, Minister of Energy K. Jayakody, Central Bank Governor N. Weerasinghe, Treasury Secretary H. Suriyapperuma, and Chairman of the Ceylon Petroleum Corporation, D.J. Rajakaruna.

Meanwhile, Sri Lanka has continued to receive multiple fuel shipments throughout March to maintain supply stability. Deliveries include consignments handled by RM Parks on 14 and 15 March, comprising 19,000 MT of diesel, 3,000 MT of super diesel, and 17,000 MT of petrol. A further 37,000 MT arrived from Singapore on 25 March, according to CPC sources.

Additional supplies were delivered by Sinopec on 18 March, including 20,000 MT of diesel, 17,000 MT of 92-octane petrol, and 3,000 MT of 95-octane petrol. A 38,000 MT shipment of diesel and petrol from the Indian Oil Corporation is expected to arrive in Colombo today (29).

Officials said existing fuel stocks are sufficient to meet national demand until May, supported by continuous arrivals. A vessel carrying 35,500 MT of diesel reached Sri Lanka earlier this week, while further consignments of petrol, diesel, and aviation fuel are expected in the coming weeks.

Global oil prices, which surged above USD 100 per barrel amid Middle East tensions, have intensified pressure on energy-importing nations such as Sri Lanka to secure stable and diversified supply lines, even as geopolitical constraints complicate procurement strategies.