Sri Lanka’s state-owned Ceylon Petroleum Corporation (CPC) has attracted strong global interest for its planned expansion of the Sapugaskanda oil refinery, with 20 international companies — including major firms from China, the United States, Japan, and the United Arab Emirates — submitting bids to participate in the project.

According to CPC Chairman D.A. Rajakaruna, the submission window for Expressions of Interest (EOIs) closed last Friday, marking the first major step toward upgrading the country’s only refinery. He said the evaluation process will begin soon, with the government prioritizing proposals that balance profitability and long-term national interest.

The Sapugaskanda refinery, in operation for several decades, plays a key role in Sri Lanka’s fuel supply chain. Previous attempts to expand the facility were hindered by years of conflict, economic challenges, and political instability. However, officials say improving economic stability and rising energy demand across South Asia have renewed investor confidence.

The proposed expansion aims to double the refinery’s processing capacity from 50,000 barrels per day to 100,000 barrels per day. The government plans to retain a controlling stake while allowing foreign investors to introduce advanced technologies and market expertise.

Rajakaruna added that the CPC is seeking innovative partnership models that generate long-term value through diversification into bunkering, jet fuel, lubricants, and petrochemicals. “We’re looking for proposals that go beyond standard investment frameworks and deliver strategic benefits for the country,” he said.

The expansion project is expected to strengthen Sri Lanka’s energy security, reduce dependency on fuel imports, and position the island as a key regional player in the petroleum sector.