Cabinet Approves Long-Term Fuel Procurement Contracts for Petrol, Crude Oil, and Diesel

 

The Ceylon Petroleum Corporation (CPC) has moved forward with a long-term procurement plan to secure supplies of Petrol 92 Unleaded, Murban Category Crude Oil, and Diesel (0.05% Sulphur), inviting bids from its registered suppliers under a Limited International Competitive Procurement Scheme.

The Procurement Process

The bidding process was designed to secure long-term supply contracts for these three essential fuel categories. Once bids were received, they were carefully evaluated to identify the most suitable suppliers.

Cabinet Approval

Following this evaluation, the Cabinet of Ministers approved the resolution to award the procurement contracts to the minimum substantially responsive bidders, based on the recommendations of the Higher-Level Standing Procurement Committee.

Why It Matters

Securing long-term supply agreements for petrol, crude oil, and diesel helps stabilize Sri Lanka's fuel supply chain, reducing exposure to short-term market volatility and supporting more predictable energy planning for the country.

Source: Cabinet Decisions on 10/08/2026

https://www.dgi.gov.lk/images/2026/08/Cabinet_Decision_on_10.08.2026_English.pdf 

Cabinet Approves Construction of Three New Fuel Storage Tanks at Muthurajawela Terminal

 

Sri Lanka's Cabinet of Ministers has given the green light for the construction of three new fuel storage tanks at the Muthurajawela terminal, marking a significant expansion of the country's petroleum storage capacity.

The Approval

At its meeting on 2 June 2025, the Cabinet approved plans to build two fuel storage tanks with a capacity of 15,000 cubic metres each, along with a third tank of 10,000 cubic metres, at the Muthurajawela terminal. The project will be funded by Ceylon Petroleum Storage Terminals Limited.

Environmental and Legal Safeguards

Recognizing the environmental sensitivity of the project, the Cabinet, at a subsequent meeting on 20 July 2026, directed the Minister of Energy and the Minister of Environment to work out the methodologies needed to satisfy environmental, legal, and other regulatory requirements — in consultation with relevant stakeholders — before the project moves forward.

In response, both ministers confirmed to the Cabinet that the project will be carried out in full compliance with the Fauna and Flora Protection Ordinance. Furthermore, all recommendations and conditions set out by the Central Environmental Authority have been incorporated into the procurement's contract agreement.

Contract Awarded Through Competitive Bidding

Following this assurance, the Cabinet approved a resolution submitted by the Minister of Energy to award the construction contract to a joint venture between M/s Indo-East Engineering and Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited.

This joint venture was selected as the minimum substantially responsive bidder through an International Competitive Bidding process, on the recommendation of the Higher-Level Procurement Committee. The contract value stands at:

• US$ 3.04 million (excluding VAT), and
• Rs. 2,796.14 million (excluding VAT)

Looking Ahead

This project represents a strategic investment in Sri Lanka's fuel storage infrastructure, aimed at strengthening national energy security while ensuring the venture proceeds in step with established environmental protections.

Source: Cabinet Decisions 10/08/2026

https://www.dgi.gov.lk/images/2026/08/Cabinet_Decision_on_10.08.2026_English.pdf

NBIA Relaunches: Sri Lanka's Biotechnology Industry Body Resumes Operations with New Leadership

The National Biotechnology Industry Association (NBIA) has officially relaunched, resuming its activities under a newly reconstituted Council and Committee. The move signals a fresh commitment to driving forward Sri Lanka's biotechnology sector.

After a period of dormancy, NBIA is restarting its operations with a clear mandate: to deepen industry collaboration, spur innovation, and support the long-term, sustainable growth of biotechnology nationwide.

Founded in 2016, NBIA serves as the country's principal representative body for the biotechnology industry, uniting corporates, universities, research institutions, professionals, and other stakeholders across the field. It functions as a bridge between industry and academia — encouraging research and innovation, enabling knowledge sharing, and backing efforts to strengthen biotech education, skills training, quality standards, and overall competitiveness. The Association's scope spans several key areas: Agricultural Biosystem Technology, Medical Biotechnology, Industrial Biosystem Technology, Marine and Aqua Technology, Energy and Environment, Food Biotechnology, and Bioprocess Technology.

Under its renewed direction, NBIA plans to prioritize greater industry engagement, expand biotechnology education and skills-building programs, and champion initiatives that boost the quality and global standing of Sri Lanka's biotech ecosystem.

The Association is now welcoming corporates, universities, research institutions, and biotechnology professionals to get involved and help shape the sector's future. Those interested can reach the NBIA Secretariat at 011 558 8834 to learn more about engagement opportunities.