Sri Lanka was forced to refuse a delivery of jet fuel on 8 May after it was found to be contaminated.
Of the 20,000 tonnes of jet fuel delivered by BP from Singapore, 7,500 tonnes had been contaminated and were deemed unusable.
The fuel arrived in two containers. The contaminated product was identified following standard quality assurance tests at the port.
However, the nation's Ceylon Petroleum says the contaminated fuel can be used as kerosene after it struck a deal with BP to buy it for this purpose.
Sri Lanka's Minister of Petroleum, Susil Premjayantha, asked Ceylon Petroleum to submit a report on the contaminated fuel.
The unaffected 12,500 tonnes of fuel met all specifications and is to be used as aviation fuel.