Provides an overview of the Lubricant Market in Sri Lanka with details on Base Oil and Bitumen. All details based on publicly available info.

1. LUBRICANT AND BASE OIL MARKET
SRI LANKA 2016

2. 2
OUTLINE
Sri Lanka: Profile | 03 - 07
Petroleum & Vehicle Sector | 09 - 12
Lubricant Market Overview | 13 - 18
Base Oil Business Opportunities | 19 - 28
Bitumen Market Overview | 29 - 32
Conclusion | 33

3. DEMOGRAPHY
COLOMBO
KANDY
JAFFNA
ANURADHAPURA
HAMBANTOTA
YALAINT AIRPORT
NUWARAELIYA
PASSIKUDA
TRINCOMALEE
SIGIRIYA
GALLE
PROFILE
Population | 20,966,000 People
Crude Birth Rate | 16 Births per 1000
Crude Death Rate | 6.3 Deaths per 1000
Total Labour Force | 8,973,000 People
Literacy Rate (15 Up) | 93.3%
Unemployment Rate | 4.6%
Life Expectancy (Avg) | 74.9 Yrs
ETHNICITY
Sinhalese | 74.9%
Sri Lankan Tamil | 11.2%
Indian Tamil | 4.2%
Moor | 9.2%
Others | 0.5%
RELIGION
Buddhist | 70.2%
Hindu | 12.6%
Islam | 9.7%
Christian | 7.6%
Other | 0.1%
3

4. GDP & GROWTH
57.2
71.8
77
93
115
2012
2015
2016
2018
2020
9%
4.8%
4.4%
6%
7.0%
2012
2015
2016
2018
2020
SERVICES 56.5%
GDP GROWTH 2020GDP AT MARKET PRICES 2020 (US $ BIL )
PER CAPITA GDP
2020 US $ 4,902
2016 US $ 3,835
2000 US $ 869
GDP IN SECTORS 2016
AGRICULTURE 7.1%
INDUSTRIES 26.8%
TAXES 9.6%
4
Source: Central Bank of Sri Lanka (2016)

5. Source: Central Bank of Sri Lanka (2016)
[US $ 4.8 Bil]
[Tea - US $ 1.26 Bil]
[US $ 7.9 Bil]
[US $ 29 Mil]
[US $ 767 Mil]
[US $ 273 Mil]
[US $ 317 Mil]
[US $ 286 Mil]
[US $ 323 Mil]
[US $ 131 Mil]
[US $ 166 Mil]
[US $ 712 Mil]
EXPORTS 2020
[US $ 33.6 BIL]
SL EXPORTS 2016 [US $ 10.3 BIL]
5

6. [US $ 9.8 Bil]
[US $ 5.1 Bil]
[US $ 4.3 Bil]
[US $ 2.7 Bil]
[US $ 856 Mil]
IMPORTS 2020
[US $ 37.3 BIL]
[Machinery]
[Building
Materials ]
[Transport
Equipment]
SL IMPORTS 2016 [US $ 19.4 BIL]
[US $ 596 Mil]
[US $ 1.68 Bil]
6
Source: Central Bank of Sri Lanka (2016)

7. SRI LANKA ON KEY RANKINGS
2016 | 2017 Rankings Ratings Body Sri Lanka India Pakistan Bangladesh Myanmar
Ease of Doing Business Rankings 2016 110/190 130/190 144/190 176/190 170/190
Competitiveness Rankings 2017 68/138 39/138 122/138 106/138 N/A
Travel & Tourism Competitiveness 2017 64/136 40/136 124/136 125/136 N/A
Network Readiness Index 2016 63/139 91/139 110/139 112/139 133/139
Human Development Index 2016 UNDP 73/188 131/188 147/188 139/188 145/188
Index of Economic Freedom 2017 112/180 143/180 141/180 128/180 N/A
Corruption Perceptions Index 2016 95/176 79/176 116/176 145/176 136/176
Social Progress Index 2016 83/132 98/132 113/132 101/132 110/132
Environmental Performance Index 2016 108/180 141/180 144/180 173/180 153/180
“Colombo was ranked as the best city in South Asia in
Mercer’s 2017 Quality Of Living Survey. Globally, Colombo
was ranked 132 out of the 231 Global cities surveyed”.
7

8. Sri Lanka’s Main Petroleum Products Include Petrol, Diesel, Kerosene, Aviation Fuel, Marine Fuel,
Furnace Oil and Liquefied Petroleum Gas & Coal.
Demand for Petroleum Products to Grow By 5% - 7% Annually.
Value of Petroleum Imports in 2016 Was Us $ 2.6 Billion.
Period Petroleum Products Market Structure Market Players
Prior to 1961 All products Oligopoly Caltex | Esso | Shell
1961 - 2003 All products Monopoly CPC*
2003 to Date Petrol | Diesel | Kerosene | Bitumen Duopoly CPC | LIOC*
Import Refine Blend Distribute Wholesale and Retail
CPC ⃝ ⃝ ⃝ Χ ⃝
LIOC ⃝ Χ ⃝ Χ ⃝
CPSTL* Χ Χ Χ ⃝ Χ
Others Χ Χ Δ Χ ⃝
Source: Central Bank of Sri Lanka (2016)
*CPC = Ceylon Petroleum Corporation ǀ *LIOC = Lanka Indian Oil Corporation Ltd ǀ *CPSTL = Ceylon Petroleum Storage Terminal Ltd
PETROLEUM INDUSTRY OF SRI LANKA
8

9. PETROLEUM IMPORTS 2016
[US $ 596 Mil]
[US $ 166 Mil]
[US $ 1,688 Mil]
[US $ 197 Mil]
Source: Public Utilities (2016)
9

10. VEHICLE POPULATION 2016
10
Source: JB Securities (2016)

11. VEHICLE POPULATION BY TYPE 2016
11
Source: JB Securities (2016)
3,381,726
1,062,447
366,831
343,263
101,655
675,982

12. LUBRICANT SALES
Source: Public Utilities (2016)
12

13. 13 13
LUBRICANT BRANDS MARKET SHARE 2016
Source: Public Utilities (2016)
64,585 Kil Lit

14. LUBRICANT SALES BY TYPE 2016
Source: Public Utilities (2016)
14

15. KEY MARKET SHARE MOVEMENTS
Source: Public Utilities (2016)
Caltex 2009: 72.9% | 2016: 45.29%
15

16. AUTOMOTIVE LUBE SALES BY TYPE 2016
Source: Public Utilities (2016)
16

17. LUBRICANT STANDARDS IN SRI LANKA
Source: Public Utilities (2016)
Type of Lubricant Minimum Standard
Equivalent
International Standard
Other Standards
Above Minimum Standard
Gasoline Engine Oil SLS 1374/2009 API SJ API SL, API SM
Diesel Engine Oil SLS 1373/2009 API CF
API CF-2, API CG-4, API CH- 4, API
CL-4, API CJ-4
Two Stroke Engine Oil SLS 1446/2012 JASO FC JASO FD
Four Stroke Motorcycle
Engine Oil
SLS 1409/2011 API SG and JASO MA
API SL and JASO MA , API SM and
JASO MA, API SL and JASO MA
Automotive Gear Oil SLS 1396/2010 API GL 4 API GL 5, API GL 6
Automatic
Transmission Oil
DEXRON IID, DEXRON III
MERCON, ALLISON C4,
JASO M315 Type Group A
DEXRON IID, DEXRON III
MERCON, ALLISON C4,
JASO M315 Type Group A
OEM Recommended Oils
Grease SLS 1424/2011 NLGI LA NLGI LB, NLGI GA, NLGI GB GC
17

18. BASE OIL IMPORTS TO SRI LANKA
18
Source: Sri Lanka Customs (2016)No Production | No Export of Base Oil

19. BASE OIL IMPORTS BY COUNTRY 2016
19
UNIT: MT
Source: Data One (2016)

20. LUBE PRODUCTION IN SRI LANKA 2016
20
Out of 16 Lube players, 13 are allowed
to import and distribute, while only 03
have the license to blend Base Oil.
During 2016, 47,286 kL of lubricants
were produced (blended) locally.
68 % of the blending was carried out by
Chevron, 22 % by Lanka IOC and
remaining 10 % by Laugfs.
Also, in 2016, a total of 3,910 kL of
Lubricants were exported to regional
markets. This is 23 % increase compared
to 2015.
Source: Public Utilities (2016)

21. BITUMEN IMPORTS TO SRI LANKA
21
Source: Sri Lanka Customs (2016)No Production | No Export of Bitumen
99.02% of all imports
are from UAE and the
balance from Bahrain
and Singapore.

22. THANK YOU
22