Sri Lankan government decides to increase capacity of Sapugaskanda oil refinery
Sri Lanka’s Cabinet of Ministers has reportedly approved the proposal presented by Sri Lanka’s Minister of Power Dallas Alahapperuma to initiate a new feasibility study aimed at increasing the capacity at the Sapugaskanda refinery from the current 40,000 barrels per day to 100,000 (bpd)
The Ceylon Petroleum Corporation Refinery meets only 25 % of the local demand for refined petroleum products. The remaining 75% has to be imported, making a greater impact on foreign exchange, local media reports stated.
A feasibility study was conducted in 2010 for the renovation and expansion of the refinery to increase its capacity up to 100,000 (bblspd).
Subsequent technological changes in the field have made it impossible to proceed on the results of the feasibility study, local media reports added.
OSL take:
The government of Sri Lanka is committed to recommence the country’s development programme that was briefly affected by the challenges posed by the global Covid 19 pandemic. This has opened up many business opportunities for foreign businesses/investors. The expansion programme planned for the oil refinery is a key project that indicates the overall programme for capacity building in the key economic sectors in the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/13112020/Z_2 |