Colombo: The Sri Lankan subsidiary of Indian Oil Corporation (IOC) has decided to double its lubricant production to six lakh litres monthly to save on imports from India and to improve its profit margin.

"We produce 3 lakh litres of lubricants at our Trincomalee refinery in Eastern Sri Lanka and will be utilising the capacity to double output," the Managing Director of Lanka IOC (LIOC) K Ramakrishnan said.

Ramakrishnan said there would be no additional investment required for doubling the lubricant output in Sri Lanka as the Trincomalee refinery can produce up to 6 lakh litres monthly.

"We hope to double lubricant production by October or November and will be able to save on transport and other costs incurred on import of 2 lakh litres of lubricants from our parent company in India," he said, adding "we are progressing well."

He, however, said some ingredients such as base oil for the lubricants would still have to be imported. As against the monthly demand of 5 lakh litres of lubricants supplied by LIOC, the Trincomalee plant of the Indian company, which was commissioned in November, 2007, produces 3 lakh litres monthly as of now in the island country, Ramakrishnan said.

By enhancing the capacity of its 5.5 million dollars lubricants blending plant in Trincomalee, it would not only attain self sufficiency in the local lubricants market but will also have additional supplies.

Ramakrishnan said the availability of additional lubricants would make LIOC more dynamic in the sector in the island country.

It would also help in improving the profits from the current annual level of about 300 million Sri Lankan rupees (1 US dollar equal to 108 SLRs).
Source : PTI