The long-awaited Request for Proposal (RFP) for the expansion of the Sapugaskanda Oil Refinery will be submitted to the Cabinet within the next month, according to the Ceylon Petroleum Corporation (CPC).

CPC Managing Director Dr. Mayura Neththikumarage told The Sunday Morning that Cabinet approval was the only remaining step before the RFP could be issued to shortlisted investors.

“In order to issue the RFP, the only thing left is to present it to the Cabinet. It will be presented to the Cabinet within about a month’s time,” he said.

The move is expected to revive the long-delayed refinery expansion project, which has remained stalled despite the completion of the initial procurement process, including the evaluation of Expressions of Interest (EOIs) and the appointment of the Technical Evaluation Committee (TEC).

The multi-billion-dollar project seeks to modernise Sri Lanka’s only oil refinery in Sapugaskanda, which has been in operation since 1969, and increase its refining capacity from 50,000 barrels per day (bpd) to 100,000 bpd under a Build-Operate-Transfer (BOT) model.

The Government launched the international procurement process to attract a strategic investor capable of financing, constructing, and operating the upgraded refinery before transferring ownership back to the State at the end of the concession period.

Earlier this year, the CPC completed the evaluation of EOIs submitted by prospective investors and appointed the TEC to assess the submissions. However, despite completing these preliminary stages, the project failed to progress to the RFP stage, prompting concerns over delays to one of the country’s most significant energy infrastructure investments.  

While the CPC has not publicly explained the reasons behind the delay, officials now say the project is ready to move into the next procurement phase once Cabinet grants approval to issue the RFP.

The Sapugaskanda Refinery expansion has long been regarded as a strategic national project aimed at strengthening Sri Lanka’s energy security by reducing dependence on imported refined petroleum products and improving the country’s refining capability.