CPC picks bidder for aviation pipeline project
The Morning: The Ceylon Petroleum Corporation (CPC) has tentatively selected the preferred bidder for the Muthurajawela–Katunayake aviation pipeline project, with the official award pending the conclusion of the tender appeal period.
Speaking to The Morning Business, CPC Managing Director Dr. Mayura Neththikumarage said that while he could not disclose the name of the selected bidder, all three bids received for the project had come from Chinese companies.
Explaining the timeline for the official awarding of the project, he said, “Usually, in any tender there is an appeal period. We are currently in that period. Once we make a tentative announcement of the selected bidder, the others have an opportunity to appeal the decision. If any appeals are submitted, we will have to address them before awarding the project.”
Dr. Neththikumarage added that the CPC was currently evaluating bids for the Colombo Port–Kolonnawa pipeline project, with the matter now before the procurement committee.
Speaking to The Morning Business on a previous occasion, he said that the pipeline projects formed part of a comprehensive upgrade of the country’s energy infrastructure, under which the CPC and Ceylon Petroleum Storage Terminals Ltd. (CPSTL) were each slated to spend Rs. 24 billion.
“Once this infrastructure development is completed, many of the infrastructure problems that have plagued the energy sector, such as leaking pipes, will be largely resolved,” he stated.
The Cabinet of Ministers on 17 November 2025 approved the proposal made by the Minister of Energy to terminate the previously implemented procurement process and to implement the Kolonnawa to Harbour Pipeline Project as an Engineering, Procurement, Construction, and Commissioning (EPCC) project.
The project will involve the construction of two piggable pipelines with diameters of 18 inches and 14 inches from the Dolphin Oil Dock in the Colombo Harbour to the Kolonnawa Terminal; the construction of a 12-inch diameter subsea pipeline section from the Dolphin Oil Dock to the De Saram Gate; and the necessary modifications of the terminals at the Colombo Harbour and the Kolonnawa Terminal.
OSL take:
Sri Lanka’s ongoing programme to modernise and expand economic infrastructure is creating a broader pipeline of business/investment opportunities for foreign businesses/investors across key sectors. The latest investment plans in the energy sector, including the Muthurajawela–Katunayake and Colombo Port–Kolonnawa petroleum pipeline projects, highlight the scale of infrastructure upgrades underway to improve efficiency, reliability and capacity. Beyond energy, business/investment opportunities are emerging across ports and logistics, renewable energy, manufacturing, tourism, information technology, agriculture, food processing, construction and infrastructure development. The Sri Lankan Government’s focus on improving connectivity, expanding productive capacity and strengthening export-oriented industries is creating demand for private capital and international expertise. Sri Lanka’s strategic location, skilled workforce, improving infrastructure and access to regional markets further enhance its investment potential. As the country moves from economic stabilisation towards longer-term growth, the development programme is increasingly creating opportunities for foreign businesses/investors to participate through direct investment, public-private partnerships (PPPs), technology transfers and joint ventures across a wide range of sectors.
| Article Code : | VBS/AT/20260916Z_1 |