Sri Lanka’s maritime sector is currently facing a significant rise in bunker fuel costs, with surcharges increasing by nearly 23% in recent weeks.
Despite this sharp escalation in operational expenses, authorities state that both the Port of Colombo and the Port of Hambantota continue to operate at full capacity, maintaining strong transhipment activity.
Government officials emphasise that fuel pricing is not the main factor influencing transhipment traffic, noting that Sri Lanka remains a key hub in global supply chains due to its strategic geographic location and logistical advantages.
Speaking to The Sunday Morning, the Managing Director of the Ceylon Petroleum Corporation, Dr. Mayura Neththikumarage, said that although the CPC is a supplier, it has not directly engaged in bunker fuel supply during the current month, with private operators playing a larger role in the market.
The 22.8% increase in bunker fuel surcharges has raised concerns about the regional competitiveness of Sri Lankan ports, especially as global shipping routes continue to shift due to prolonged disruptions in West Asia. These changes have led many vessels to reconsider traditional refuelling locations.
Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku attributed the increase entirely to global market conditions, stressing that Sri Lanka must remain competitive in an open international market where shipping lines seek the most cost-effective refuelling options.
He further explained that bunker fuel pricing reflects global trends, and ships often choose ports based on the best available rates across regions such as Singapore or South Africa.
Despite rising fuel costs, port throughput remains strong. Authorities highlight that transhipment volumes are primarily driven by location and efficiency rather than fuel availability. Both major ports are currently operating at maximum capacity, prompting the Government to prioritise infrastructure development, including the expansion of the East Container Terminal, to meet future demand.
Kodithuwakku also noted that ships have greater flexibility in refuelling compared to aircraft, allowing them to plan bunkering stops based on cost advantages. As a result, vessels will continue to call at Sri Lankan ports for transhipment regardless of local fuel supply conditions, with bunkering serving as an added commercial benefit rather than a necessity.
Looking ahead, the Government is focusing on long-term resilience by enhancing storage capacity, including plans to develop new fuel storage facilities at the Sapugaskanda refinery and the Jaya Container Terminal Oil Bank, ensuring the country remains strategically positioned amid global market uncertainties.
