COLOMBO, Aug 15 Reuters Chinese oil major Sinopec expects to start operations in Sri Lanka on Sept. 20 and will be allowed to sell fuel for less than the maximum retail price set by the government, Sri Lanka39;s power minister said on Tuesday.

Sinopec39;s entry into Sri Lanka will help reduce pressure on Sri Lanka39;s foreign exchange reserves, and the island nation expects two other international fuel operators to start operations by October and November, Kanchana Wijesekera said.

Reducing pressure on our foreign exchange with Sinopec39;s entry will also help us increase fuel imports and strengthen the economy, Wijesekera told reporters.

Australia39;s United Petroleum and U.S. firm RM Parks in collaboration with Shell are the other two companies that have received approval.

The entry of the new players will end a market duopoly of staterun Ceylon Petroleum Corp and Lanka IOC, a unit of Indian Oil Corp.

Under the new deal, the Chinese firm will be given a 20year licence to operate 150 fuel stations and will also be able to invest in 50 new fuel stations.

Sri Lanka is grappling with its worst financial crisis since independence from the British in 1948 with reserves at 3.8 billion at the end of July.

The island39;s economy was severely hit last year by spiralling energy costs worsened by the war in Ukraine, which caused long lines at fuel stations and hourslong power cuts.

Sinopec and Vitol have also been shortlisted for a refinery project in southern Sri Lanka…