Sapugaskanda refinery to operate as a separate public enterprise
March 19, 2024 12:58 pm
The government says it has decided to operate the Sapugaskanda Oil Refinery as a state-owned business entity disjoined from the Ceylon Petroleum Corporation (CPC).
The proposal, tabled by Minister of Power and Energy Kanchana Wijesekera, was green-lighted by the Cabinet of Ministers at its meeting convened on Monday (March 18).
In a statement, the government said it has identified the need to make a ‘critical investment’ to upgrade the oil refinery in order to keep it up and running for another 25 years.
Thereby, it has been decided that the Sapugaskanda Oil Refinery be operated as a separate public enterprise and to call Expressions of Interest (EOIs) to select a suitable strategic investment partner to upgrade the infrastructure facilities to address the existing operational challenges.
Minister Wijesekera, in a post on his X handle (formerly Twitter) said the government is also exploring the option of relocating the Sapugaskanda Oil Refinery to Trincomalee in the future with upgraded modern facilities and the development of the Tank Farm.
The facility, which is the only oil refinery in Sri Lanka, was established in 1969 and fulfils approximately 25% of the country’s demand for refined petroleum products.
