On Monday, March 27, workers from the Ceylon Petroleum Corporation’s (CPC) trade union collective launched a hunger strike against the Sri Lankan government’s decision to privatize the state-owned company.
The hunger strike, dubbed a ‘satyagraha’ by union workers, was launched in front of the Ceylon Petroleum Corporation’s facility in Kolannawa.
Special discussion on privatizing the CPC: A special discussion on the government s decision to privatize the Ceylon Petroleum Corporation (CPC) will be held today (March 28), says the Petroleum Trade Unions Collective. MORE.. https://t.co/Kh1VJWFk2l pic.twitter.com/E9OuSdZ1dw
— LankaOnline (@LankaOnline) March 28, 2023
Chairman of the Sri Lanka Nidahas Sevaka Sangamaya trade union, Jagath Wijegunaratne, told Newsfirst.lk , “that attempts to privatize the Ceylon Petroleum Corporation are an act of treason.” He also added that despite earning profits in billions, state-run enterprises are being handed over to multinational companies.
The Ceylon Electricity Board Engineers Union (CEBEU) is also protesting against the government’s move to privatize the electricity board, according to The Island.
On Monday, Sri Lanka’s Minister of Power and Energy Kanchana Wijesekara announced over Twitter that the government had granted cabinet approval for three global oil companies to enter Sri Lanka’s domestic fuel retail market by awarding them licenses. These companies include Sinopec, United Petroleum from Australia, and RM Parks from the US in collaboration with Shell Plc.
150 fuel stations, which were earlier operated by the state-run CPC, will be handed over to each company. In addition to this, 50 new stations will be established by the three companies in new locations. They will be granted a license to operate for 20 years to import, store, distribute, and sell petroleum products in Sri Lanka.
The only other foreign oil company currently operating in Sri Lanka is the Indian Oil Company.
On March 20, the International Monetary Fund (IMF) approved the 17th bailout loan, worth US$ 3 billion dollars, after months of negotiation with Ranil Wickremesinghe’s government. This was preceded by the Sri Lankan government adopting extreme austerity measures, including increasing taxes, freezing government recruitment, and managing public expenditure. The government’s program to divest state-run enterprises like the Ceylon Petroleum Corporation (CPC) and Ceylon Electricity Board (CEB) are parts of managing state expenditure as per the IMF’s conditions.
Sri Lanka’s economic crisis escalated a year ago, in March 2022, leading to acute shortages of food, fuel, and medicines. It was also marked by frequent power cuts due to a shortage of electricity and ‘petrol riots.’
