Australian Fuel Investor Exits SL, Initiates Dispute Resolution ⛽

• Australian-owned United Petroleum Lanka (UP), which entered the local fuel retail market in August 2024, has initiated formal dispute resolution proceedings against the Government of Sri Lanka (GoSL). • UP suspended fuel supply operations in December 2024, citing the Government's failure to uphold critical contractual terms, leading to an economically unsustainable environment for the investment. • An orderly Exit Agreement, signed in April 2025 and endorsed by the Cabinet, was terminated in October 2025. • The termination occurred because the Ministry of Energy failed to fulfill a key undertaking stipulated in the exit agreement, despite United Petroleum meeting all its obligations and granting extensions. • UP stressed that the difficulties faced—from operation to exit—underscore the vital importance of policy consistency and adherence to contractual arrangements for attracting and retaining foreign investment.