The Cabinet of Ministers has given the go-ahead to conduct a new feasibility study to increase the capacity of the Sapugaskanda refinery of the Ceylon Petroleum Corporation (CPC).
The refinery meets only 25 percent of the local demand for refined petroleum products as its current capacity is only 40,000 bblspd.
It has been noted that the remaining 75 percent has to be imported making a greater impact on foreign exchange.
A feasibility study had been conducted in 2010 for the renovation and expansion of the refinery to increase its capacity up to 100,000 bblspd.
However, subsequent technological changes in the field have made it impossible to proceed on the results of the 2010 feasibility study.
Accordingly, the cabinet of Ministers approved the proposal presented by the Minister of Power to initiate a new feasibility study to determine the scope, technical, operational, and financial feasibility of the project which is to be implemented with a focus on several alternative proposals to enhance the existing capacity.
