{"id":18213,"date":"2026-04-20T10:46:24","date_gmt":"2026-04-20T10:46:24","guid":{"rendered":"https:\/\/srilanka.factcrescendo.com\/english\/?p=18213"},"modified":"2026-04-20T21:23:22","modified_gmt":"2026-04-20T21:23:22","slug":"an-explanation-of-the-published-reports-that-sri-lanka-purchased-crude-oil-at-usd-286-per-barrel","status":"publish","type":"post","link":"https:\/\/srilanka.factcrescendo.com\/english\/an-explanation-of-the-published-reports-that-sri-lanka-purchased-crude-oil-at-usd-286-per-barrel\/","title":{"rendered":"Did Sri Lanka buy crude oil at $286 per barrel?"},"content":{"rendered":"\n
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Due to the current tensions involving the US, Iran, and Israel, many countries around the world have had to face an energy crisis to some extent. Despite the crisis, Sri Lanka maintained fuel supplies, but the Ceylon Petroleum Corporation raised fuel prices on several occasions. <\/p>\n\n\n\n

In this context, claims that Sri Lanka purchased crude oil at the highest price per barrel in the world market have been published in mainstream media as well as on social media platforms. We have taken steps to fact-check the claim.<\/p>\n\n\n\n

Social Media Posts:<\/strong><\/p>\n\n\n\n

The post claimed that the HSBC chief had stated at an international conference that Sri Lanka had paid $286 for a barrel of oil while other countries paid $150. The owner of the relevant social media account shared the post, saying that this was another multi-billion-dollar robbery.<\/p>\n\n\n\n

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Facebook<\/a> | Archived Link<\/a> Facebook<\/a> | Archived Link<\/a><\/p>\n\n\n\n

The post claimed that the HSBC chief had stated at an international conference that Sri Lanka had paid $286 for a barrel of oil while other countries paid $150. The owner of the relevant social media account shared the post, saying that this was another multi-billion-dollar robbery. The posts can be seen here<\/a>\u00a0 Archived Link<\/a> and here<\/a> Archived Link<\/a><\/p>\n\n\n\n

This clarification addresses the issues raised on social media about whether Sri Lanka has paid a high price per barrel of oil and whether the head of HSBC has made such a statement.<\/p>\n\n\n\n

Explainer:<\/strong><\/h4>\n\n\n\n

Since a statement allegedly made by the CEO of HSBC Bank that Sri Lanka had paid a whopping sum of $286 for a barrel of crude oil was based on social media posts, we first investigated the facts of the statement made by the CEO.<\/p>\n\n\n\n

Content of the statement made by the HSBC CEO<\/strong><\/h4>\n\n\n\n

Several foreign websites reported that HSBC CEO George Elhadary made comments at an investment conference held in Hong Kong last week about the impact of the closure of the Strait of Hormuz on the global economy amid the military situation in the Middle East. The CEO’s comments, which also mentioned Sri Lanka, were reported by theMiddle East Eye<\/a> website with the headline “Sri Lankan buyer pays $286 for a barrel of oil.”Sherwood.news<\/a> had previously reported the story and quoted the CEO’s statement.<\/p>\n\n\n\n

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Archived Link<\/a><\/p>\n\n\n\n

Its Sinhala translation is as follows:<\/p>\n\n\n\n

\u201cI\u2019m not worried about the headlines. I mean, the headlines say oil is up to $100 or $110. But in practice, if you try to get oil from the Middle East right now, you might have to pay $140 or $150. The reality is, if you try to get oil across the Red Sea, you\u2019re paying more than $30 or $40 in shipping costs for a barrel of oil.<\/p>\n\n\n\n

And even without war insurance, you have to pay about 5%. After including transportation, insurance, fuel refining, and other costs, the price of a barrel of oil becomes much higher by the time it is finally delivered.<\/p>\n\n\n\n

The highest price I have seen is $286; that is the price paid for a barrel of oil that Sri Lanka received. Maintaining such a price for a long period of time is not easy for a country and economy like Sri Lanka.\u201d<\/p>\n\n\n\n

Although the HSBC CEO stated that it was a barrel of oil, the CEO did not directly state whether it was crude oil or refined fuel. Sri Lanka is a country that meets its energy needs by importing refined fuel as well as crude oil.<\/p>\n\n\n\n

How did the local media report the HSBC CEO’s statement?<\/strong><\/p>\n\n\n\n

Sri Lanka has purchased crude oil at the highest price in the world market, that is, $286 per barrel, according to the Middle East Eye website, and the country’s mainstream media, including electronic media, reported the news as follows: thus<\/a>, thus<\/a>, thus<\/a>, and thus<\/a>. <\/p>\n\n\n\n

However, in some cases, the HSBC CEO’s statement was also reported as a barrel of oil<\/a>. The mainstream media also posted on their social media accounts that international media had reported that Sri Lanka had imported crude oil for $286<\/a>.<\/p>\n\n\n\n

Meanwhile, some opposition politicians had also accused the government of purchasing crude oil at very high prices<\/a>.<\/p>\n\n\n\n

Ceylon Petroleum Corporation’s response<\/strong><\/p>\n\n\n\n

In response to media reports, the Ceylon Petroleum Corporation (CPC) has issued a statement saying that the corporation imports crude oil into Sri Lanka only for the Sapugaskanda refinery. Accordingly, the corporation has not paid or promised to pay US$286 per barrel for any crude oil imported or contracted to be imported, the corporation emphasises in the statement.<\/p>\n\n\n\n

The statement further notes that the first crude oil ship to reach Sri Lanka after the unrest in the Middle East region will arrive in Sri Lanka on April 17 and that crude oil ships arriving after the outbreak of the Middle East war have been promised approximately US$71.99, 111.62, 71.81, and 113.29 per barrel, which is a very favourable value compared to the current world market price.<\/p>\n\n\n\n

Simultaneously, the statement adds that legal action is expected to be taken against all parties for spreading false statements, causing unrest and tension in society, and damaging the reputation of the Ceylon Petroleum Corporation.<\/p>\n\n\n\n

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Concurrently, the Chairman of the Ceylon Petroleum Corporation, Janaka Rajakaruna, made a special statement on April 16, stating that the claims that the oil corporation had purchased a barrel of crude oil for $286 were completely false news<\/a>.<\/p>\n\n\n\n

Sri Lanka has purchased diesel for $286, says the chairman of the oil corporation.<\/p>\n\n\n\n

At the same time, the Chairman of the Ceylon Petroleum Corporation, calling a media conference on April 17, stated that the corporation had not purchased crude oil for $286 as reported in media reports and that diesel had been purchased for such an amount.<\/p>\n\n\n\n

The chairman also stated that there is a question of whether the media misunderstood the CEO’s statement and reported it incorrectly or whether they deliberately spread the word about crude oil.<\/p>\n\n\n\n

“Diesel prices have increased significantly. None of us can control that price. If a ship arrives at 5 o’clock in late March or early April, the price of that ship will definitely go to those prices. No one can stop it. The price has increased after the premium value and the world market price are added together. It is not a situation that we can control. If we do not buy oil in this way, the country will lose its oil supply. When the refinery runs out of oil, we have to buy it at the increased prices in the world market. That is the oil that is being used now.”<\/p>\n\n\n\n

The chairman stated that there is a big difference between crude oil and refined fuel (diesel and petrol) and that only 20%-30% of the country’s fuel needs are supplied through refineries, while the remaining 70% is supplied through refined fuel.<\/p>\n\n\n\n

The Chairman stated that the Ceylon Petroleum Corporation purchased diesel on March 31st at a price of 285.28 per barrel and that the diesel from the ship that arrived on April 7th was purchased at a price of 288.06 US dollars per barrel.<\/p>\n\n\n\n

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