Trade union sources at Sri Lanka's petroleum authority, the Ceylon Petroleum Corporation state that the refining of petroleum may reach a halt commencing next week.
Union sources say shortage of crude oil stocks for refining is the reason for the suspended operations.
The trade unions also accuse CPC authorities for the delay in importing crude supplies.
According to Chief Secretary of the CPC's Jathika Sewaka Sangamaya Ananda Palitha the refinery is bringing losses to the CPC due to technical issues.
According to CPC authorities a delay could occur in crude oil importation due to sanctions imposed against Iran but the authority will implement measures to directly import refined fuel rather than import crude and refine it.
The Sapugaskanda petroleum refinery caters to 30 percent of the country's petroleum needs at present.