Sri Lanka to construct new fuel tanks to ensure 45-day petroleum stock
Daily FT: In a move to strengthen the country’s fuel security, the Cabinet of Ministers has recently approved constructing new storage tanks and replace aging ones at the Kolonnawa and Muthurajawela terminals, enabling the Ceylon Petroleum Storage Terminal Company (CPSTL) to maintain a minimum petroleum stock sufficient for 45 days.
It was approved to finance the project using CPSTL’s own funds, recognising the critical importance of ensuring a continuous and stable supply of petroleum products across the country.
The CPSTL has initiated several major infrastructure projects to enhance the country’s fuel storage capacity and ensure uninterrupted supply.
“Under this initiative, six new tanks with a combined capacity of 64,000 cubic meters are currently under construction at the Kolonnawa terminal, while the procurement process has begun for the construction of three additional tanks with a total capacity of 40,000 cubic meters at the Muthurajawela terminal,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at a recent post-Cabinet meeting media briefing.
In addition, the company plans to replace two existing tanks — Nos. 30 and 31 at Kolonnawa, with new tanks of 7,000 cubic meters and 15,000 cubic meters capacity respectively. “These replacements are aimed at modernising facilities and maintaining operational safety and reliability,” he added.
OSL take:
The increasing economic activities and demand have presented many business/investment opportunities in Sri Lanka’s energy industry. Also, given that Sri Lanka’s energy infrastructure needs upgrading and development, there has been a further expansion in business/investment opportunities. Sri Lanka’s strategic positioning in the Indian Ocean and the strong trade ties enjoyed with many foreign countries have made Sri Lanka an emerging business destination in the South Asian region. These factors in turn have expanded the country’s energy industry and related sectors with Sri Lankan authorities opening the retail fuel market while also looking at developing the oil bunkering business. Apart from the direct business/investment opportunities in the country’s energy industry, there are many emerging business/investment opportunities in sectors related to the energy industry, including the development of infrastructure and supplementary infrastructure facilities required to meet the demand of the growing industry. Given the lucrative nature of businesses in the local energy industry and related sectors as well as their increasing business potential, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s energy industry.
| Article Code : | VBS/AT/20251117/Z_3 |