In a bid to kick-start fuel trade with Sri Lanka and address the growing trade imbalance, the United States has dispatched samples of its West Texas Crude (WTC) for viability testing by the Ceylon Petroleum Corporation (CPC), a top official confirmed.
CPC Chairman D.A. Rajakaruna said the samples had been sent via courier, but due to their classification as hazardous cargo, they would take a few weeks to arrive. As a result, any decision on importing U.S. fuel is unlikely before August 1.
Sri Lanka had requested the samples after proposing to purchase U.S. fuel—provided it is cost-effective—as part of a broader effort to reduce the trade gap, which currently tilts in Sri Lanka’s favour.
Meanwhile, the U.S. has imposed a 30% tariff on Sri Lankan exports but has offered a window for negotiations until August 1 to consider reducing the levy, contingent on Sri Lanka’s steps to balance the trade relationship.
President Anura Kumara Dissanayake recently held a virtual meeting with U.S. Trade Representative Jamieson Greer to push for tariff relief and to deepen bilateral trade and investment ties.
The developments come as the International Monetary Fund (IMF) warns of increased downside risks to Sri Lanka’s economic recovery. IMF mission chief Evan Papageorgiou highlighted that persistent trade policy uncertainty and high export tariffs could undercut progress, stressing the need to stay the course on reforms under the Extended Fund Facility (EFF) program.
“These reforms are vital to enhance resilience and protect the hard-won economic gains,” he noted, adding that any shocks would be managed within the EFF framework.
