ECONOMYNEXT – Sri Lanka’s cabinet of ministers has approved a proposal by state-run Ceylon Petroleum Corporation to seek investors to build a 100,000 barrels per day refinery in on built operate transfer basis, Minister Nalinda Jayatissa said.
The planned new refinery will be built in Sapugaskanda in the premises of an existing refinery built by Iran.
Cabinet approved the proposal presented by the “presented by the Minister of Power and Energy to develop the Sapugaskanda oil refinery and call for expressions of interest for the identification and selection of suitable financial suppliers/investors for the implementation of the project for the establishment of a new refinery within the same premises with a capacity of 100,000 barrels per day on the basis of an operation and transfer (BOT),” a post cabinet statement said.
The CPC’s efforts to modernize and upgrade the Sapugaskanda oil refinery both quantitatively and qualitatively to fulfill the demand of the market have not been successful, the government said.
Under the policy framework relevant to the energy of the present government, the modernization of the existing refinery or construction of a new refinery has been identified as a priority function.”
The cabinet had already approved a proposal to establish the Sapugaskanda oil refinery as a public enterprise separate from the CPC and to identify an appropriate strategic investment partner.
However, it is yet to be implemented.
The cabinet has also granted approval to take necessary steps to see the possibility for establishment of a new oil refinery in the Trincomalee area. The new government last month said they had invited India to establish this refinery. (Colombo/February 11/2025)