The Ceylon Petroleum Corporation (CPC) has been embroiled in controversy following reports of exorbitant oil purchase prices, initially denying claims of paying US$286 per barrel for crude oil but later admitting to this price for diesel. The corporation, which is the sole importer of crude oil for the Sapugaskanda Refinery, initially labeled reports of a $286 per barrel crude oil payment as false, misleading, and damaging to its reputation.
Reports circulating on social media and other platforms, some attributed to a "Middle East Eye" article citing an HSBC CEO, claimed Sri Lanka procured crude at this inflated price. The source of these reports was later identified as HSBC Group CEO George Elhedery, who made the statement at an investment conference in Hong Kong, a statement subsequently confirmed by HSBC Group's London headquarters.
Initially, the CPC categorically rejected these claims, stating it had neither paid nor agreed to pay anywhere near US$286 per barrel for any crude consignment. Despite recent Middle East unrest, the CPC maintained it secured crude oil at favorable market-comparable prices, with upcoming shipments estimated at approximately $71.99, $111.62, $71.81, and $113 per barrel. The first crude oil vessel following Middle East tensions was initially expected on February 17th, later updated to April 17th.
However, CPC Chairman D.J.A.S.de.S.Rajakaruna later admitted on April 17th that the corporation did purchase a barrel of diesel for $286, clarifying the statement made by HSBC Group CEO George Elhedery. He emphatically denied that this price was paid for crude oil, emphasizing that the higher cost was for refined fuels. The Chairman stated that a barrel of crude oil that arrived on March 11th cost $66.99, and the maximum price for crude oil under current Letters of Credit is $113.29. A crude oil vessel scheduled to arrive on April 17th was priced at $71.99 per barrel.
Further details emerged from CPC General Manager Mayura Nettikumarage, who reportedly provided specific information on three diesel shipments purchased between late March and mid-April:
* 240,000 barrels at $285 per barrel (arrived March 31st)
* 295,000 barrels at $288 per barrel (arrived April 6th-7th)
* 254,000 barrels at $281 per barrel (arrived April 7th-8th)
Based on this data, the average price paid for diesel barrels ordered in late March and early April has been calculated at approximately $284.6.
In response to the controversy, the CPC stated its intention to pursue legal action against reports claiming Sri Lanka paid $286 per barrel for crude oil, describing them as inaccurate and aimed at damaging its reputation. On April 20th, the CPC lodged an official complaint with the Ministry of Mass Media against Hiru Media Network and Asia Broadcasting Corporation (Pvt) Ltd, accusing them of irresponsibly spreading false information, specifically a news report aired on April 16th, 2026, claiming Sri Lanka paid $286 per barrel for crude oil. The CPC Chairman's letter to the Ministry Secretary stated that such reporting has damaged the corporation's reputation, undermined public trust, and posed risks to the national economy and energy security.
Several political figures have weighed in on the matter:
* Opposition MP Harsha de Silva accused the government and CPC officials of misrepresenting HSBC CEO George Elhedery's original remarks, clarifying that the CEO had referred to the refined oil "door-to-door" price, not crude oil.
* Former Provincial Council Member Varuna Rajapaksha alleged that the CPC paid an additional $10 per barrel above the world market price for a diesel purchase, claiming this resulted in a loss of approximately Rs. 250 million from a single vessel.
* Pivithuru Hela Urumaya (PHU) leader Udaya Gammanpila reiterated that the CPC paid $286 per barrel for diesel, attributing this claim to HSBC CEO Georges Elhedery, and criticized the CPC Chairman's previous statements. On April 20th, Gammanpila demanded that the CPC reveal the reasons for purchasing diesel at $286 per barrel, asserting that no valid explanations have been provided by the corporation to date.
* United Republican Front leader and former minister Patali Champika Ranawaka warned that the purchase of diesel at $286 per barrel would cause the price of a liter of diesel to exceed Rs. 700 in the near future. He attributed this projected increase to the 18% Value Added Tax (VAT), Rs. 50 per liter in additional expenses, and a 3% commission paid to third parties involved in the transaction.
* The Patriotic National Movement (PNM), through its General Secretary Dr. Wasantha Bandara, accused the government of bypassing an opportunity to secure cheaper oil from Russia. Dr. Bandara highlighted that Russia had expressed willingness to provide diesel at $150-160 per barrel on concessional credit terms through a direct government-to-government deal, making the purchase of diesel at $286 from an Indian company highly questionable.
The CPC Chairman continues to reiterate his denial that crude oil was purchased for $286 per barrel, maintaining that the higher payment was exclusively for finished diesel. The corporation remains firm on pursuing legal action against those it deems to be spreading false information regarding its crude oil procurement. The controversy continues to fuel public debate and scrutiny over the CPC's purchasing practices and their impact on the national economy and consumer prices.