The Government has appointed PUCSL as the shadow regulator for the Lubricants Market. Legislative enactments are currently pending, which would enable the PUCSL to fully regulate the downstream Petroleum Industry. As the shadow regulator of the lubricants market, the PUCSL advises the Ministry of Petroleum Industries on policy and regulatory matters with respect to liberalization of the lubricants industry. When the lubricant market was further liberalized in 2006, PUCSL assisted and advised the Ministry of Petroleum Industries in formulating the policy framework and market entry criteria in order to ensure that only quality lubricants meeting internationally accepted standards are allowed into the market. PUCSL assisted the Ministry of Petroleum in executing the necessary agreements with the selected market participants.

The lubricant market is regulated and governed under the provisions of the Petroleum Products (Special Provisions) Act No. 33 of 2002 and the Ceylon Petroleum Corporation Act No. 28 of 1961. The importation, exportation, blending, production, sale, supply and distribution of lubricants including greases require specific authorization from the Government. Authorization is granted only to qualified parties who possess proper technical knowhow and adequate financial capability, to ensure that substandard products do not enter the market. Therefore, when using lubricants, only lubricants manufactured and marketed by authorized parties should be selected.