Strategic blueprint for offshore bunkering in Sri Lanka

A strategic crossroads with untapped potential

- By Shashi Dhanatunge

WITH global shipping lanes intersecting just south of its coastline, Sri Lanka holds a pivotal location in the Indian Ocean. Despite this geographic advantage, Sri Lanka's marine fuel (bunkering) sector remains underdeveloped. The country currently handles an estimated 1.2 to 1.5 million metric tonnes of marine fuel annually, a fraction of its potential. A transformation in policy, regulation, and technology modelled on Singapore's globally admired reforms could change that.

Singapore: From scandal to global benchmark

Singapore's journey to becoming the world's top bunkering hub was not without challenges. In the early 2010s, the market was plagued by widespread malpractice: bunker suppliers delivered less fuel than invoiced, manipulated flow meters, and falsified delivery notes. This eroded trust, discouraged premium clients, and made enforcement difficult.

In 2017, the Maritime and Port Authority (MPA) of Singapore made a bold move: it mandated the use of certified Mass Flow Meters (MFMS) on all fuel oil deliveries. These meters provided real-time, tamper-proof data that verified exact quantities delivered. Coupled with auditing, digital documentation, and strict licensing rules, Singapore restored credibility.

The results were impressive.. Singapore's bunker fuel sales rose from 47.4 million metric tonnes in 2016 (preMFM) to over 50.64 million metric tonnes by 2023 an 8.4% increase despite global disruptions. The transparency brought high-value clients back, including naval fleets, LNG vessels, and green shipping alliances.

Sri Lanka: A sleeping giant in the Indian Ocean