Twenty foreign companies, including those from China, the United States (U.S.), and Japan, have expressed interest in investing in the expansion of Sri Lanka’s Sapugaskanda oil refinery, an official said yesterday.
The Ceylon Petroleum Corporation (CPC) recently called for Expressions of Interest (EOIs) from potential investors to expand the facility. The deadline for submissions closed last Friday.
CPC Chairman D.A. Rajakaruna told Daily Mirror that 20 firms from leading countries in the world had applied.
“There are companies from countries such as the U.S., China, Japan, and the United Arab Emirates (UAE) in the list. We are yet to begin evaluation,” he said.
The Sapugaskanda refinery has been a critical asset in Sri Lanka’s energy security for decades, and the expansion plans were considered earlier, followed by feasibility studies in 2010 and 2022, but several challenges delayed progress.
Civil war, the pandemic, economic crises, and political instability prevented any investment.
“With stability improving and regional energy demand growing, now is the most suitable time to re-initiate the project and ensure its long-term success,” he said.
“CPC and the government can manage incremental modifications and maintain profitability,” he said.
This is Sri Lanka’s largest and only petroleum refining business, owned by the government, with a guaranteed local demand and strong potential for expansion into bunkering, jet fuel, lubricants, and chemical markets. The government expects healthy, value-adding proposals that go beyond typical investment models, he said.
The state aims to retain a significant stake, ensuring long-term national benefit while allowing investors to secure competitive advantages. Investors should propose partnership models where the government benefits not just proportionally, but strategically, he said.
Besides, with expansion, Sri Lanka plans to increase its refinery capacity from 50,000 barrels a day to 100,000 barrels a day.
Source:Daily Mirror.lk