ECONOMYNEXT – Sri Lanka has decided to explore the option of relocating Ceylon Petroleum Corporation’s oil refinery to Trincomalee, Energy Minister Kanchana Wijesekera said.
The cabinet of ministers this week approved a proposal to spin off the refinery as a separate company to raise capital from local and foreign investors to modernize the 1969 structure.
“It was also decided to explore the option of relocating the Sapugaskanda Oil Refinery to Trincomalee in the future…,” Minister Wijesekera said in an x.com (twitter) message.
The move is considered in the light of the development of a tank farm in Trincomalee, he said.
The tank farm, dating back to World War II when Sri Lanka was under British rule, and is to be jointly developed with India. (Colombo/Mar19/2024)
This refinery is now more than 50 years old. Although there has been refurbishments several times, the refinery has passed its “use by date” . Relocation with a new refinery and with up to date technology is the suitable solution to get lower “unit cost” , if we are to compete with imports particularly from other mega size refineries around the South Eastern region.