• Informs employees of layoffs, citing “unforeseen circumstances beyond control”
• CEO Niger Simonsz announces employee terminations due to “restructuring efforts”; asks workers to return company assets 
• Employees express unrest over abrupt layoffs, consulting legal experts to challenge breaches of labour laws 
• Sources reveal company is negotiating with Govt., though complete withdrawal appears inevitable 

United Petroleum Lanka Ltd., the local subsidiary of the Australian energy giant, is making headlines for all the wrong reasons as it prepares to exit the market in less than a year after a high-profile debut.

The dramatic retreat comes amid its latest move to terminate employee contracts, pointing towards an imminent and unceremonious withdrawal from its first international venture.

The company has already informed its employees of imminent layoffs, citing “unforeseen circumstances beyond the company’s control” as the reason for its decision.

In a letter addressed to staff, CEO Niger Simonsz announced that “restructuring efforts” have rendered several positions “redundant”, with employment contracts to be terminated from early next month.

“This has been a difficult decision and we are sincerely appreciative of the hard work and effort that you have contributed towards the business,” the letter stated.

Employees were also asked to return all company assets by their last working day, signalling that the company is on the verge of shutting down operations in the country.

The sudden layoffs have sparked unrest among employees, who have indicated they might take legal action against what they view as abrupt and unfair dismissals.

Sources told the Daily FT that legal consultations are underway, with employees contesting the company’s adherence to contractual obligations and Sri Lankan labour laws.

Industry sources suggest that the company is now negotiating with the Government, but insiders revealed that a complete withdrawal is almost inevitable.

Despite many attempts to speak to the Energy Minister and higher management of United Petroleum Lanka Ltd., they were unavailable for comment.

The move follows a turbulent few months for United Petroleum, which halted its fuel supplies in December 2024, expressing dissatisfaction with the existing pricing formula and operational conditions. (https://www.ft.lk/top-story/Australia-s-United-Petroleum-faces-challenges-eyes-exit/26-771831)

The firm announced its entry and operations with considerable fanfare, having secured a 20-year agreement under the Board of Investment (BOI) framework and committing $ 27.5 million to the import, storage, and sale of petroleum products. (https://www.ft.lk/business/United-Petroleum-inks-BOI-deal-to-start-operations-with—27-5-m-investment/34-762684)

The Australian energy giant’s entry into Sri Lanka was hailed as a landmark move to diversify the fuel retail market.

On 27 March 2023, the Cabinet of Ministers approved a strategic move to open up the fuel retailing market further with the grant of a 20-year licence to three more global players from China, the US, and Australia. (https://www.ft.lk/top-story/More-to-make-fuelling-merrier/26-746791)

For Sri Lanka, the implications of United Petroleum’s departure go beyond the energy sector. The move raises fresh concerns about the country’s ability to attract and retain foreign direct investment (FDI) at a time when economic stability and investor confidence are paramount.