January 21, Colombo (LNW): In preparation for an official visit to the Middle East scheduled for February, President Anura Kumara Dissanayake has unveiled key plans aimed at strengthening Sri Lanka’s energy and economic sectors.
During a public address, the President discussed ongoing efforts to secure vital energy supplies and enhance the nation’s economic infrastructure, with particular focus on petroleum imports and the establishment of a new oil refinery.
One of the key elements of these initiatives involves a proposed partnership with India to construct an oil refinery in Sri Lanka.
The President revealed that the refinery would not only serve the domestic market but also position the country as a key player in global petroleum exports.
“We are set to collaborate with an Indian company to build this oil refinery, where we will refine crude oil, store it in warehouses, and export it worldwide,” he affirmed, emphasising the long-term economic benefits of this project for Sri Lanka.
In addition to the refinery plans, President Dissanayake provided an update on the Sampur power plant project, a joint venture with India.
“The ownership of the plant will be shared equally, 50-50. Initially, electricity was to be supplied at US$ 0.07 per unit, but after successful negotiations, we have secured a price of US$ 0.0597 per unit. Work on the power plant is now underway,” he said, highlighting the importance of this project in addressing Sri Lanka’s energy needs.
The President also gave a detailed update on the status of the 99 oil tanks located in Trincomalee, which have been a source of strategic focus for Sri Lanka’s energy plans.
“Out of the 99 tanks, we have taken control of 24, while 14 have been handed over to the Indian Oil Corporation (IOC). This leaves us with 61 oil tanks that are crucial for the proposed refinery and future energy security,” he explained.
Regarding fuel prices, the President acknowledged that while there has been a significant reduction in diesel prices under his administration, further price cuts are not expected on a monthly basis in the immediate future due to the financial challenges faced by the Petroleum Corporation.
“The Corporation currently owes Rs. 900 billion, and the debt is repaid with every litre of fuel sold. Once this debt is cleared, we will be able to eliminate the excise duty,” he clarified, outlining a clear path to potential future reductions.
President Dissanayake also touched upon ongoing infrastructure development projects funded by China, such as the construction of a conference hall in the Colombo Port City, financed by a USD 1.2 million grant. Additionally, he highlighted plans for a new oil refinery in Hambantota, further solidifying Sri Lanka’s strategic position in energy production.
On the topic of corruption, the President assured the public that measures are being taken to address alleged misconduct and ensure accountability.
“Legal proceedings have already begun. Previously, many files were hidden away in the Attorney General’s Department, but now cases are being filed swiftly. Several high-profile cases will reach their conclusion by the end of this month,” he affirmed, reinforcing the government’s commitment to tackling corruption head-on.
