The Cabinet of Ministers has approved a proposal to modernize the Sapugaskanda oil refinery and invite expressions of interest (EOIs) to identify potential investors for the project.
Despite past efforts by the Ceylon Petroleum Corporation (CPC) to upgrade the refinery, no significant progress had been made, Cabinet Spokesperson Minister Nalinda Jayathissa said.
A 2022 feasibility study recommended finding a strategic investment partner, and the CPC Board has now approved calling for EOIs to move forward with the project.
Under the government’s energy policy framework, priority has been given to either modernizing the existing refinery or constructing a new one. The approved plan includes developing a new 100,000-barrel-per-day refinery at the same site under a Build-Operate-Transfer (BOT) model.
The government had previously granted cabinet approval to establish the Sapugaskanda refinery as a separate public enterprise and explore the feasibility of a new refinery in Trincomalee, but no action had been taken until now. (Newswire)