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New Deal

May 08 (LBO) – The Power Ministry said Monday that it would pump in funds to upgrade 100 state held fuel sheds, left over from privatising Sri Lanka's retail fuel sector. Sri Lanka's retail fuel market is shared by state oil giant Ceylon Petroleum Corporation and Indian Oil Corp., each holding a one third stake in a common infrastructure facility.

Each stake also included 100 retail fuel sheds, with the balance one third stakes in the common facility being held by the Treasury in an agreement that ends in 2008.

"The Treasury is currently holding a balance one third stake in the petroleum sector and we want to invest funds to refurbish some of these sheds," Energy Minister A.H.M Fowzie, told LBO.

"About 18 dealers have sent in applications for funding to the Ministry."

The Ministry is in talks with dealers but the extent of funding has not been decided.

Ceylon Petroleum Corporation (Ceypetco) is also looking after daily maintenance, though it has held off making any large investments to upgrade the sheds.

The state oil corporation is eyeing the third stake and is keen that it be handed back together with the 100 sheds, when the agreement ends i

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