• Rs. 48 b towards modernising critical pipeline and storage systems
• Colombo Port to Kolonnawa pipeline project to cost Rs. 12.78 b 
• Muthurajawela to Katunayake aviation pipeline project to cost Rs. 16.3 b

Sri Lanka is set to embark on a sweeping overhaul of its petroleum infrastructure, with State energy institutions collectively committing Rs. 48 billion towards modernising critical pipeline and storage systems across the island.

Speaking to The Sunday Morning Business, Ceylon Petroleum Corporation (CPC) Managing Director Dr. Mayura Neththikumarage revealed that Sri Lanka was to carry out a comprehensive upgrade of its energy infrastructure, with the CPC slated to spend Rs. 24 billion while Ceylon Petroleum Storage Terminals Ltd. (CPSTL) would also spend Rs. 24 billion.

“Once this infrastructure development is completed, the infrastructure problems that have plagued the energy sector, such as leaking pipes, will be largely resolved,” he stated.

Accordingly, he revealed that they had commenced a tender process for the Colombo Port to Kolonnawa pipeline project, stating that the new pipelines would fully replace the old pipes.

The CPC Managing Director further revealed that bids received under the tender process had been opened last Wednesday (3).

However, he was unable to provide any specifics as to the number of bids received, stating that he was not part of the tender committee.

Commenting on the timeline for the commencement of the project, he stated: “They will carry out the valuation of the bids, after which they should be able to commence the project within around two months.”

Dr. Neththikumarage revealed that the project was expected to cost Rs. 12.78 billion and was expected to take 18 months to complete.

He also revealed that the tender process for the Muthurajawela to Katunayake aviation pipeline project had commenced and that authorities were in the final stages of awarding the project to a selected bidder. 

He noted that three bids had been received for the project, adding that the Katunayake project was expected to cost Rs. 16.3 billion.

Dr. Neththikumarage further revealed that plans were underway for a Trincomalee (China Bay) pipeline, but noted that a tender was yet to be published.

The Cabinet of Ministers on 17 November 2025 approved the proposal made by the Minister of Energy to terminate the previously implemented procurement process and to implement the Kolonnawa to Harbour Pipeline Project (KHPP) as an Engineering, Procurement, Construction, and Commissioning (EPCC) project. 

It will involve the construction of two piggable pipelines with diameters of 18 inches and 14 inches from the Dolphin Oil Dock in the Colombo Harbour to the Kolonnawa Terminal; the construction of a 12-inch diameter subsea pipeline section from the Dolphin Oil Dock to the Seram Gate; and necessary modifications of the terminals at the Colombo Harbour and the Kolonnawa Terminal.