Sri Lanka will call for fresh bids from expert international petroleum companies for petroleum exploration, development and production activities in the Kaweri Basin in Mannar.

“The Cabinet of Ministers approved the proposal presented by Arjuna Ranatunga, Minister of Petroleum Resources Development to call for bids from international Petroleum Companies to explore, Develop and Production of Petroleum in areas where petroleum is expected in Mannar and Kaweri Area,” the government said.

A natural gas field was found for the first time off the coast of Sri Lanka in the Mannar Basin after the previous government signed an agreement with Cairn India Limited, in 2008 to explore for oil and gas off the country’s north-western coast.

However, Cairn India pulled the plug after two-years of exploration as oil prices plunged. Currently, Sri Lanka produces no oil and is dependent on imports.

Meanwhile the Cabinet of Ministers have also approved a proposal to gazette the drafted bill to amend Sri Lanka Electricity Act No 20 of 2009 amended by the act No 31 of 2013, with the intention of avoiding difficulties in the process of purchasing electricity generated by renewable Energy Sources and to submit for parliament approval consequently.

The proposal was tabled for approval by Minister of Power and Renewable Energy Ranjith Siyambalapitiya.