Sri Lanka Jet Fuel Prices Highest Among Major Asian Airports: IATA

Sri Lanka’s passenger traffic had recovered to around 71 percent of pre-pandemic level by April

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By Allam Ousman

COLOMBO – Jet fuel in Sri Lanka is expensive and the government should consider capping the mark-up of state-run Ceylon Petroleum Corporation to reduce costs, according to Philip Goh, Regional Vice President for Asia Pacific of the International International Air Transport Association (IATA) said.

“Airlines pay more for jet fuel in Sri Lanka than at other major airports in Asia,” Goh told an aviation forum in Colombo, Friday.

With jet fuel accounting for 30 percent of operating costs of an airline, high fuels hit raised running costs, he said.

Aviation Minister Nimal Siripala said a few airports like Male was also expensive for fuel, but he was taking action to liberalize fuel.

Already a tank farm was being started at Colombo Port. At the Ratmalana domestic airports, a private party was being appointed after calling for proposals, he said.

Sri Lanka’s aviation sector was estimated to employ around 700,000 person and there was much potential for growth in the future. But a blueprint was needed to develop Sri Lanka into a major aviation hub.

“Sri Lanka’s aviation blueprint needs to facilitate the sustainable growth of the industry and having an updated airport masterplan is the first step,” Goh said.

“I urge the government to engage in a consultative approach involving airlines to ensure that industry input is factored in.”

Sri Lanka’s passenger traffic had recovered to around 71 percent of pre-pandemic level by April. IATA was projecting Sri Lanka to exceed pre-pandemic level by 2025.

In the US and Middle East there was a faster recovery, with domestic aviation already exceeding pre-pandemic levels, Goh said.

But in Asia, delays in key countries opening up and led to a slower recovery in aviation traffic. – EconomyNext

Allam Ousman
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