Press briefing of Cabinet Decision taken on 2024-03-18 (Subject to Confirmation at the next Meeting)

Establishment of the Sapugaskanda Oil Refinery as a State-owned Enterprise separated from the Ceylon Petroleum Corporation (CPC)

- The Sapugaskanda Oil Refinery, the only oil refinery in Sri Lanka, was established in 1969 and supplies about 25% of the domestic demand for refined petroleum products. The need to make a critical investment has been identified in order to update the relevant refinery and use it for another 25 years and it has been observed that it is appropriate to establish the Sapugaskanda Oil Refinery as a separate State-owned enterprise enabling to secure required investments for that purpose through both local and foreign private sectors. Accordingly, the proposal made by the Ministry of Power and Energy to establish the Sapugaskanda Oil Refinery as a State-owned enterprise separated from the Ceylon Petroleum Corporation, was approved by the Cabinet.