Sri Lanka receives positive signals from natural gas and oil extraction process
Sri Lanka’s Energy Minister Udaya Gammanpila has reportedly stated that the country has received very positive signals from the natural gas and oil extraction process from three basins in the North East Coast of the country.
He has noted that several follow up initiatives have also been taken in this regard both locally and internationally.
Gammanpila has told Daily News Business that the natural gas and oil extraction would be the paradigm shift in the Sri Lankan economy and it is to this effect that a special Energy Minister was appointed.
He has observed that a decision was taken by the government of Sri Lanka to recommence exploration recently and also to attract more investors to the industry.
In addition a natural gas policy to attract more investors to explore for oil and gas in Sri Lanka is already prepared.
The Minister has further observed that research done in the basin from Puttalam to Trincomalee has also indicated that natural gas and oil gas deposits could be found. The Mannar basin extraction has yielded positive results.
Gammanpila has added that extraction of petroleum oil or natural gas in Sri Lanka will begin before he contests the next Parliamentary election.
OSL take:
Natural gas and oil exploration is an emerging business/investment opportunity in Sri Lanka. The government of Sri Lanka is looking at expediting natural gas and oil exploration in the country. Given Sri Lanka’s geographical positioning in the Indian Ocean, ease of doing business environment and the many trade agreements as well as trade concessions enjoyed by the country country have placed the island in a strategic position in the South Asian region.
| Article Code : | VBS/AT/09/10/2020/Z_3 |