<ul><li>4 Mannar Basin offshore blocks opened to int’l bidders</li><li>New licensing round to extend into 2027</li><li>Investors to bear exploration, development costs</li><li>Major global energy companies already showing interest</li></ul> Sri Lanka is hopeful of commencing its first commercial oil and gas production within the next three to five years if exploration under the newly launched offshore licensing round proves successful, according to Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage.The Government last week formally opened the Sri Lanka Licensing Round 2026 (SL2026-01), offering four offshore exploration blocks covering nearly 34,000 sq km in the Mannar Basin to qualified international energy companies.Speaking to The Sunday Morning, Dr. Neththikumarage said that the latest initiative differed significantly from previous exploration attempts as it was structured to take successful investors beyond exploration and development and ultimately towards commercial production.“We expect it to be three to five years to start the first production,” he claimed, explaining that the initial period would involve exploration drilling, evaluation, and development before production could commence.However, he noted that the timeline could potentially be shortened depending on the results of exploration activities.Dr. Neththikumarage said that the process would broadly cover three stages – acquisition, development, and production – with companies that successfully established commercially viable resources being able to proceed towards production. “Once this project is done, they have access to commercial production,” he said.The licensing round, officially opened on Tuesday (25), is expected to run into next year, providing prospective investors sufficient time to study the available geological and geophysical information and prepare their bids.According to Dr. Neththikumarage, the Government is currently unable to estimate the total investment that could be generated through the licensing round, as expenditure will depend on the exploration and development programmes proposed by individual bidders.However, he stressed that the financial burden of exploration and development would be borne by the selected companies rather than the Government.The bids would also be evaluated based on the benefits offered to the State, including financial commitments such as signature bonuses and guarantees.Dr. Neththikumarage said that inquiries had already been received following the launch of the initiative, including interest from major international players.He noted that only a relatively limited number of companies globally possessed the technical expertise and financial capacity required to undertake large-scale offshore petroleum exploration and development.While major companies had approached Sri Lankan authorities, Dr. Neththikumarage said that the Government was directing interested parties through the formal licensing process in order to maintain transparency and ensure a competitive selection process.The CPC Managing Director identified growing international demand for natural gas as another factor that could strengthen Sri Lanka’s prospects of attracting investors.Previous exploration efforts had focused more heavily on crude oil, whereas available evidence indicated that Sri Lanka’s prospective offshore areas could hold significant natural gas resources.With global interest in natural gas having grown, he said that the investment environment was now more favourable for Sri Lanka’s offshore prospects.Previous exploration in the Mannar Basin has already resulted in gas and condensate discoveries, demonstrating the presence of a working petroleum system and providing evidence of the basin’s hydrocarbon potential. Sri Lanka has had several iterations of ‘we have found oil’ in relation to the Mannar Basin before.The latest licensing round will also draw on geological and exploration information accumulated through earlier exploration programmes spanning several decades.Dr. Neththikumarage said that data obtained from previous drilling and exploration campaigns had subsequently undergone further analysis, allowing authorities to develop a more comprehensive dataset and exploration plan for prospective investors.The Government, through the Petroleum Development Authority of Sri Lanka (PDASL), has offered four offshore blocks under the new licensing round with a combined area of approximately 33,964 sq km.The four blocks are 2026-MB-01, covering 5,948.95 sq km; 2026-MB-02, covering 5,689.05 sq km; 2026-MB-03, covering 10,597.67 sq km; and 2026-MB-04, covering 11,728.30 sq km.The acreage stretches across water depths ranging from approximately 100 m to 3,000 m, giving prospective investors access to substantial exploration areas across the Mannar Basin.The PDASL has described the basin as central to Sri Lanka’s upstream petroleum investment proposition, noting that although previous exploration had established the presence of a working petroleum system, substantial areas remained comparatively underexplored.The Government expects that international explorers will use modern exploration technologies and interpretation techniques to reassess the basin’s potential.The latest initiative follows reforms to Sri Lanka’s upstream petroleum sector under the Petroleum Resources Act No.21 of 2021, which established the PDASL as the country’s upstream petroleum regulator and introduced a new institutional framework governing petroleum exploration and development.Energy Minister Anura Karunathilaka, announcing the licensing round, said that the opening of the four Mannar Basin blocks represented an important step towards developing Sri Lanka’s domestic energy resources.“The Sri Lanka Licensing Round 2026 marks an important step in the development of our country’s energy resources. We are opening four significant exploration blocks in the Mannar Basin and invite experienced international energy companies to evaluate this opportunity and work with Sri Lanka as long-term partners in the responsible development of our natural resources,” he said.PDASL Director General Dr. Neil De Silva stated that previous exploration had already established a working petroleum system in the basin.“The combination of substantial available acreage, technical information, and Sri Lanka’s strengthened regulatory framework provides international explorers with a compelling opportunity to take a fresh look at the basin,” he said.Official bid documents were issued with the opening of the licensing round last Tuesday, while the data room containing technical information required by prospective bidders is scheduled to become available from next Tuesday (1 September).The information available to prospective investors will include geological and geophysical data, details of the four exploration blocks, technical material, licensing and participation requirements, and opportunities for direct engagement with the PDASL.The Government will also take the licensing round to international investors through a roadshow beginning at the World Energies Summit in London on 29–30 September, where the PDASL is expected to present the Mannar Basin opportunity directly to the international upstream petroleum industry.A virtual investor briefing is scheduled for 21 October, followed by further investor engagement at the Asia Petroleum Geoscience Conference &amp; Exhibition 2026 in Kuala Lumpur on 16–17 November.Successful bidders will subsequently be notified following the formal evaluation process, after which petroleum resource agreements are expected to be signed.&nbsp;

Offshore exploration: Govt. eyes first oil and gas production in 3–5 years

Over a dozen US-sanctioned Iranian crude oil tankers which were keeping station outside the territorial waters of Sri Lanka near the Port of Galle for over a month have dispersed, navigating further into international waters, The Sunday Morning learns.Many of the 16 tankers which were off Sri Lankan waters began to disperse on Wednesday (26), and as of Friday (28) afternoon, around 11 were steaming in a north-westerly direction in the Laccadive Sea.&nbsp;The move has broken the formation of the long picket line they held for weeks off Galle in Sri Lankan waters. Open-source ship tracking platforms such as MarineTraffic indicate the dispersal of the so-called ‘dark fleet’ of Iran’s crude oil transport merchant fleet, with the tankers moving away from Sri Lanka.Last week, The Sunday Morning reported exclusively about 16 Iranian-flagged Very Large Crude Carrier (VLCC) tankers which are under sanctions by the US Department of the Treasury, idling at the edge of Sri Lankan waters off the southwestern coast.&nbsp;When contacted, Deputy Minister of Ports and Civil Aviation Janitha Ruwan Kodithuwakku told The Sunday Morning last week that the Iranian tankers remained outside Sri Lanka’s territorial waters and acknowledged that any private companies that provided them services and banks which enabled such actions ran the risk of US sanctions.&nbsp;He claimed that the Government was yet to receive information from the US through official channels. This, despite the US Department of the Treasury’s Office of Foreign Assets Control (OFAC)-sanctioned vessels list being readily accessible online.Authorities in Colombo remained tight-lipped about the vessels and the potential risk which bunker suppliers and their banks ran by supplying such sanctioned vessels.The 16 Iranian tankers, which were suspected of conducting ship-to-ship transfer of crude oil to buyers off the Eastern Outer Port Limits (EOPL) off Malaysia’s southern state of Johor before arriving outside Sri Lankan waters, are being closely monitored by the United States. The US Navy has moved to intercept three Iranian-flagged tankers in southern international waters off Sri Lanka over the last few months.&nbsp;

US sanctions: Iranian ‘dark fleet’ off Galle scatters

<ul><li>NSO seeks instructions and clarification from ministry</li></ul>The National System Operator (NSO) is unable to immediately implement the Public Utilities Commission of Sri Lanka (PUCSL) directive to establish Battery Energy Storage System (BESS) capacity for solar energy by next year due to a lack of detailed implementation agreements and documents, NSO Chairman Dr. Pradeep Perera told The Sunday Morning.He made the remarks in response to an inquiry about a directive issued by the PUCSL this week as part of its approved tariff decision, requiring the NSO to ensure that at least 450 MW of solar PV capacity with BESS is added to the electricity system by March 2027.The measure is intended to address the forecast capacity deficit during the first quarter of 2027 and ensure sufficient capacity to meet peak demand without scheduled power interruptions caused by capacity shortages.Speaking on the regulatory directive, Dr. Perera said that the NSO had only received the initial decision but lacked the practical guidelines required for execution. “We have only received the decision itself. We haven’t received the details on how to implement it yet,” Dr. Perera said, adding that the NSO had requested formal instructions and clarifications from the Ministry of Energy.He stated that while some baseline numbers had been provided for BESS, concrete agreements and administrative documents had to be finalised before any work could begin. “To implement it, we need agreements and documents first. Those have not been issued to us by the PUCSL yet. At the moment, we are not in a position to implement this immediately.”Dr. Perera also cleared up widespread public confusion and misinformation surrounding a recent directive regarding the disconnection of rooftop solar panels. He emphasised that the measure was strictly temporary and was driven by the sharp drop in electricity demand on Sundays.“This is a temporary measure,” Dr. Perera clarified, correcting inaccurate reports circulating in the public domain. “It does not apply to residential households. It is actually requested for commercial and industrial buildings with solar installations exceeding 200 kW.”The NSO requests these large-scale systems to temporarily disconnect on Sundays to balance the grid when overall industrial and commercial power consumption plummets.Addressing concerns about a potential power crisis next year driven by the El Niño weather phenomenon, Dr. Perera said that the current grid management strategies were entirely unrelated to next year’s weather forecasts.According to him, the national electricity grid is currently dealing with the opposite problem: a surplus of power generation. Due to sufficient water levels in reservoirs at the moment, the NSO has abundant hydroelectric resources, but it has had to deliberately restrict daytime hydro generation to prioritise absorbing solar power into the grid.“Even though we have water, if we generate maximum hydropower, we would have to curtail solar power,” Dr. Perera explained. “We have restricted daytime hydro generation because we must absorb solar during the daytime.”Looking ahead to next year’s climate challenges, Dr. Perera noted that the El Niño effect was projected to peak around April 2027. He claimed that the NSO had sufficient time to prepare and implement the necessary mitigation measures before then.The PUCSL last week warned that Sri Lanka could face a fresh threat of power cuts as the prevailing El Niño conditions push up electricity demand while reducing hydropower generation.The warning comes as the PUCSL approved new feed-in tariffs for electricity generated from renewable energy sources, with the revised rates coming into effect on 25 August. The tariffs will remain valid until 24 February 2027 and apply to renewable energy power plants, rooftop solar prosumers, and projects incorporating BESS.Meanwhile, the Government earlier announced that the country was expected to begin connecting commercial-scale BESS to the national electricity grid in early September, with projects planned near 16 electricity transmission substations nearing completion.Multiple attempts to contact Minister of Energy Anura Karunathilaka and Deputy Minister of Energy Arkam Ilyas were unsuccessful.&nbsp;

Renewable energy: NSO, PUCSL at odds over BESS directive

<ul><li>Fiscal targets on track ahead of Oct. assessment</li><li>7th review to assess end-June performance</li><li>8th and final review scheduled from March 2027</li></ul> The Government is confident that Sri Lanka will meet the conditions required for the Seventh Review of the International Monetary Fund (IMF)-supported programme, with fiscal performance currently remaining on track, according to Department of Fiscal Policy Director General Dr. M.K.C. Senanayake.Speaking to The Sunday Morning, Dr. Senanayake said that the authorities expected the relevant fiscal and other programme requirements to be in line with the IMF-agreed framework by the time of the Seventh Review, which can take place on or after 1 October this year.“We are confident that all the conditions will be met by the Seventh Review. The fiscal conditions are already on track and by 1 October everything should be in line with the IMF timeline,” Dr. Senanayake said.The Seventh Review represents one of the final assessments under Sri Lanka’s four-year Extended Fund Facility (EFF) arrangement, which was approved by the IMF Executive Board in March 2023 as the country sought to recover from its worst economic crisis in decades.According to the IMF’s programme schedule, the Seventh Review is available from 1 October and is principally based on Sri Lanka’s performance against end-June 2026 targets as well as continuous performance criteria. The Eighth Review, the final scheduled review under the current arrangement, is available from 1 March 2027 and will assess performance based largely on end-December 2026 targets.Under the programme, Sri Lanka’s performance is monitored through a series of quantitative performance criteria, indicative targets, monetary policy conditions, and structural benchmarks.Among the key areas monitored by the IMF are the Central Government primary balance and tax revenue, accumulation of official international reserves, Central Bank credit to the Government, prevention of new Government expenditure arrears and external payment arrears, social safety net expenditure, and restrictions on Central Bank purchases of Government securities in the primary market.The IMF has also stressed that Sri Lanka must continue improving tax compliance and broadening the tax base while strengthening public financial management and preventing the re-emergence of expenditure arrears.In its latest assessment following a visit to Colombo in June, the IMF said that maintaining the reform momentum was critical for preserving fiscal and external sustainability. It noted that following fiscal easing in 2026, the Government had committed to returning to a primary balance target of 2.3% of GDP in 2027.The IMF has additionally called for accelerated reforms of State-Owned Enterprises, continued cost-recovery pricing for electricity and fuel, adequate targeting and coverage of social safety nets, prudent monetary policy, exchange rate flexibility, further accumulation of foreign reserves, and continued governance reforms.Several structural measures are also due during the period leading up to the completion of the programme. According to the latest IMF programme documents, these include fiscal, revenue, public financial management, State-owned bank, and other structural reforms, while the 2027 Budget is also expected to remain consistent with the parameters agreed under the programme.The IMF said in June that Sri Lanka’s progress in meeting its programme commitments would be formally assessed during the Seventh Review mission, adding that the dates of the mission itself would be announced separately. Therefore, 1 October represents the programme’s review availability date rather than necessarily the date on which an IMF mission will commence.The upcoming assessment follows the IMF Executive Board’s completion of the combined Fifth and Sixth Reviews in May this year, which gave Sri Lanka immediate access to SDR 508 million, equivalent to approximately $ 695 million.The Seventh Review will examine Sri Lanka’s progress against the end-June 2026 targets, while the Eighth Review, available from 1 March 2027, will assess the end-December 2026 targets and continuous performance criteria before the completion of the current EFF review cycle.Dr. Senanayake maintained that, from the fiscal policy perspective, the Government remained confident of remaining within the agreed trajectory ahead of the October review.&nbsp;

Govt. confident of meeting IMF targets

<ul><li>RFP remains under review ahead of finalisation</li></ul>The professional valuation of the Sapugaskanda Oil Refinery’s assets is expected to be completed by the end of October, as the Ceylon Petroleum Corporation (CPC) moves ahead with preparations linked to the future development of the country’s only oil refinery.CPC Managing Director Dr. Mayura Neththikumarage told The Sunday Morning that professional services firm EY had been engaged to carry out a comprehensive valuation of the refinery’s assets, including its properties and machinery.The exercise is expected to take approximately two months, placing its completion towards the end of October. “We have started a professional valuation. EY is doing it, and it will take around two months,” Dr. Neththikumarage said.Asked whether the process was therefore expected to be concluded by the end of October, he confirmed the timeline.The valuation comes as the Request for Proposal (RFP) relating to the Sapugaskanda Refinery is also being prepared, with Dr. Neththikumarage saying that the document is nearing completion but remains subject to further scrutiny.According to the CPC Managing Director, the RFP has been going through several rounds of review to ensure that all requirements identified by the relevant project committee are adequately incorporated before the document is finalised.Certain provisions are also being reviewed and rephrased as part of the process. “The RFP is almost complete,” he said, noting, however, that several rounds of review were necessary to ensure that all relevant aspects were properly covered.The completion of the valuation and finalisation of the RFP are expected to be important steps in determining the way forward for the ageing refinery, which has long been identified as requiring substantial modernisation and capacity improvements.The Sapugaskanda Refinery, commissioned in 1969, remains Sri Lanka’s only operational crude oil refinery and has played a central role in the country’s petroleum supply infrastructure for more than five decades.Its relatively limited refining capacity and ageing infrastructure have, however, resulted in successive governments considering proposals for its modernisation and expansion.The refinery has a processing capacity of approximately 50,000 barrels of crude oil per day. Sri Lanka consequently remains heavily dependent on imports of refined petroleum products to meet domestic demand, alongside crude oil imported for processing at Sapugaskanda.Plans to upgrade and expand the refinery have been discussed over a number of years, with the Government seeking options to improve refining efficiency, increase capacity, and reduce the country’s reliance on imported finished petroleum products.The latest valuation is expected to establish a professional assessment of the existing asset base, covering property, plant, machinery, and other assets associated with the refinery.Such an assessment would provide an updated basis for decisions relating to future investment and development of the facility as the Government proceeds with the RFP process.&nbsp;

Sapugaskanda valuation expected by end-Oct.

<ul><li>NWSDB providing 15 litres per person under emergency measures</li></ul>More than 84,500 people affected by the ongoing dry spell are currently facing water shortages, with over 75,000 people receiving drinking water through emergency distribution arrangements, as authorities rely on a combined fleet of bowsers operated by the National Water Supply and Drainage Board, Disaster Management Centre (DMC), and local authorities to meet the demand.According to the DMC, 84,545 people belonging to 26,457 families across seven districts and 25 divisional secretariat divisions have been affected by the dry spell. Of these, 75,734 people from 24,144 families are currently receiving drinking water, with water distribution underway in 22 of the affected divisional secretariat divisions.Speaking to The Sunday Morning, NWSDB Chairman Chandana Bandara said that 15 litres of water were being provided per person under the emergency arrangements.He noted that the water distribution operation was not handled by the NWSDB alone, with the DMC and local authorities also involved in supplying water to affected communities.According to Bandara, the NWSDB currently has around 120 water bowsers of its own, while additional bowsers are provided by Local Government (LG) authorities and the DMC. “We have 120 bowsers of our own. In addition, other LG authorities and the DMC also have their own bowsers,” he said.Bandara said that water distribution was being carried out through multiple institutions, with much of the operation taking place through LG bodies.&nbsp;Despite the fact that more than 75,000 individuals are receiving drinking water at present, Bandara stated that the current bowser fleet was sufficient to meet demand. “Up to now, the fleet is actually sufficient because the situation is only in Monaragala, Batticaloa, and some areas of Polonnaruwa,” he said, noting that the water shortage requiring bowser distribution was still limited and hence the bowser fleet was sufficient.The DMC said that Monaragala had the largest number of people affected, with 35,639 people from 11,074 families requiring drinking water. Batticaloa follows with 28,523 affected people from 9,547 families, while Ampara has 8,847 affected people from 2,823 families. Polonnaruwa has 2,646 affected people from 683 families receiving drinking water.&nbsp;

El-Niño: Water crisis hits over 84,500 amid dry spell

<ul><li>Rs. 3 b allocated for immediate insurance compensation</li><li>Additional funds promised if allocation proves insufficient</li></ul> The Government has commenced gathering information on farmers affected by the prevailing dry weather and the extent of crop damage across the country as it prepares to disburse compensation from an initial Rs. 3 billion allocation.Deputy Minister of Agriculture and Livestock Namal Karunaratne told The Sunday Morning that agricultural authorities were currently collecting information on affected cultivation areas, the extent of crop losses, and the number of farmers who had suffered damage.“Once that is done, compensation will definitely be given to everyone who suffered damages,” Karunaratne said.He said that reports of crop damage were being received from several parts of the country amid the prevailing weather conditions, but a comprehensive assessment of the losses was yet to be completed.“There are news reports from various places that crops are being damaged due to the El Niño condition. All relevant information is still being gathered. If farmers have suffered any cultivation damage, they will be compensated,” he said.According to Karunaratne, the Government has allocated Rs. 3 billion for immediate insurance compensation for farmers whose crops have been affected.Asked whether the allocation would be sufficient to cover all affected farmers, he said that additional funds would be provided if the compensation requirement exceeded the amount currently set aside.&nbsp;Meanwhile, the Government has introduced an interest-free concessionary financing scheme of up to Rs. 25 million for eligible rice mill owners and cooperative societies under the 2026 Yala season paddy purchasing programme.The Government has allocated Rs. 7.5 billion for the scheme, which is intended to facilitate paddy purchases at guaranteed prices and prevent farmers from being forced to sell their produce at lower prices.Karunaratne said that Parliament had approved a supplementary estimate to finance the Treasury-backed programme, under which eligible mill operators could obtain interest-free financing of up to Rs. 25 million.“Allocating such a massive amount of money to mill owners on behalf of the farmer to sell paddy is happening for the first time in history,” he said.According to the Deputy Minister, nearly 50 rice mill owners from Anuradhapura are already participating in the programme.Registered small- and medium-scale rice mills with a maximum daily milling capacity of 25 MT, as well as cooperative societies operating mills with the same capacity, are eligible for the scheme.“This is given only to those who meet those qualifications. They must be registered in our records,” Karunaratne said.The Government is also dealing with storage constraints, with more than 100,000 MT of paddy from previous seasons remaining in warehouses.Karunaratne said that alternative Government and private buildings were being used to store newly purchased paddy in areas where existing warehouses had reached capacity. “There are a few places with such issues, where warehouses are filled. In these places, we use separate Government buildings and private buildings to purchase paddy,” he said.The guaranteed purchasing prices currently stand at Rs. 120 per kg for red and white nadu, Rs. 130 for samba, and Rs. 140 for keeri samba.&nbsp;

Crop loss: Govt. prepares to assist drought-hit farmers

A committee report containing recommendations for the establishment of a new Central Highlands Environmental Authority (CHEA) has been submitted to the Cabinet of Ministers for review.The proposed legislation, to be introduced as the Central Highlands Environmental Authority Act, is aimed at protecting ecologically sensitive high-altitude regions and the Government expects to finalise the legislation and enact it by next year, according to an official at the President’s Media Division (PMD).“A committee comprising representatives from all relevant institutions was appointed to study the situation,” a PMD official told The Sunday Morning, adding that the recommendations and proposals formulated by the committee had now been submitted to the Cabinet.President Anura Kumara Dissanayake also spoke about the proposed legislation while attending a ceremony on Friday (28) to hand over houses under the Navodayapuram housing scheme, built for families who had lost their homes in the 2023 landslide at Kabaragala Mountain in Poonagala, Bandarawela.Describing the central highlands as the heart of Sri Lanka, the President warned that the region was being destroyed before the country’s eyes. He said that the area was witnessing mountain collapses, the drying up of natural springs, and the silting up of rivers and canals.The President stressed that once the relevant legislation was passed, the proposed authority would be vested with the powers necessary to protect the ecosystem.&nbsp;“Under this programme, some people may lose their homes. Areas currently used as agricultural land may have to be converted into forests. But this has to be done. Otherwise, we will face a major disaster. The powers of institutions will be redistributed, positions may shift from one institution to another, and job titles may change. No one needs to panic,” the President said.The proposed authority will function along similar lines to the Mahaweli Authority, while its establishment is being supported by a project funded by the Asian Development Bank (ADB). Its jurisdiction will primarily cover ecologically sensitive areas situated above 5,000 feet.The PMD official said that the new authority would have extensive powers over forest conservation and land-use decisions within its designated areas, including the authority to halt unauthorised development and other activities that threaten environmentally sensitive areas.The move to establish a dedicated authority has gained urgency amid growing concerns over climate change and the increasing risk of natural disasters. The official cited recent devastating landslides in mountainous countries such as Nepal as a warning of the potential risks facing Sri Lanka.President Dissanayake first signalled plans for new legislation during the 2026 Budget debate last year, saying that inhabited areas located more than 5,000 feet above sea level should be protected through systematic reforestation and planned land use. He proposed a blanket ban on constructions in these areas.However, environmentalists and experts have raised concerns over the proposed 5,000-foot threshold, arguing that a blanket restriction based solely on elevation lacks a scientific basis. Instead, they urged the Government to rely on the data-driven National Physical Planning Policy and Plan 2050 when determining areas requiring environmental protection.They noted that much of Nuwara Eliya, including the city itself, lay at or above the 5,000-foot elevation mark, warning that rigidly applying such a restriction or relocating established communities could have far-reaching consequences for the tea industry, local businesses, tourism, and livelihoods in the region.A committee comprising representatives of the relevant State institutions was subsequently appointed to examine the proposal and formulate recommendations.The committee included officials from the National Building Research Institute (NBRI), Central Environmental Authority (CEA), Urban Development Authority (UDA), and National Physical Planning Department (NPPD), among other institutions.&nbsp;

Central highlands: Proposal for a new env. authority before Cabinet

<ul><li>Drinking water prioritised: NWSDB</li></ul> Drinking water will be given priority over agricultural and hydropower requirements if reservoir levels continue to decline, as irrigation reservoirs currently hold only around 35–40% of their capacity due to the prevailing drought conditions, according to National Water Supply and Drainage Board (NWSDB) Chairman Chandana Bandara.“Right now, the priority is being given to drinking water and not for any agricultural or hydropower purposes,” he said.However, Bandara stated that there was no immediate threat to drinking water supplies, pointing out that water was no longer being released for major agricultural requirements as the Yala cultivation season had largely ended.“Within the irrigation reservoirs, about 35–40% water is available,” Bandara told The Sunday Morning, adding that reservoirs managed through the Mahaweli Authority and the Irrigation Department were at a comparatively high level of around 50–55% capacity.According to Bandara, the end of the Yala season has significantly reduced demand for irrigation water, with current releases being used mainly for drinking-water purposes. Therefore, he said that there was no major issue at present, particularly in areas supplied through the Mahaweli and irrigation systems.The NWSDB Chairman also stated that there were currently no restrictions on water use, including water cuts, noting that the main areas experiencing water-related concerns were in the Uva and Eastern Provinces.“No water restrictions have been imposed by the Irrigation Department or Mahaweli Authority. The Western Province has no water-related issue. The issues are only in the Uva and Eastern Provinces,” he added.Bandara added that the authorities were expecting increased rainfall towards the end of September based on Department of Meteorology forecasts.Meanwhile, Director General of Agriculture Dr. Thushara Wickramaarachchi said that the agriculture sector was not facing any immediate pressure from declining water availability. “Almost everything has been harvested; only about 1–2% remains. The Mahaweli and Irrigation authorities have agreed to provide the water required for that portion of remaining cultivation,” Wickramaarachchi said.“There are no cultivation restrictions. However, we are preparing for the upcoming Maha season, during which we will have water issues and we have prepared separate programmes in that regard.”Irrigation Department Director of Water Management Eng. H.M.P.S.D. Herath stated that water allocations among agriculture, drinking water, and hydropower varied depending on the irrigation scheme. “Currently, there are no water restrictions on either agriculture or drinking requirements, but it is better to use water sparingly and efficiently,” he said.According to official data from the Irrigation Department, water storage across Sri Lanka’s 74 major reservoirs has fallen to 35% combined capacity, with 1,182,385 acre-feet of water held against a total gross capacity of 3,114,407 acre-feet. Only 1,039,767 acre-feet of the available volume are effectively usable storage, with 142,618 acre-feet being unusable dead storage.&nbsp;

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