The Cabinet of Ministers has approved the proposal to award a contract worth US$3.04 million and Rs. 2,796.14 million, excluding VAT, for the construction of three new fuel storage tanks at the Muthurajawela Terminal.

The project involves the construction of two fuel storage tanks with a capacity of 15,000 cubic metres each and a third tank with a capacity of 10,000 cubic metres. The project is to be financed using funds of the Ceylon Petroleum Corporation Storage Terminal Company.

Cabinet approval was initially granted for the project at a meeting held on June 2, 2025.

At its meeting on July 20, 2026, the Cabinet also decided that the Ministers of Energy and Environment should consult relevant stakeholders and take appropriate measures to ensure that all environmental, legal and other requirements are met in implementing the project.

The Ministers subsequently informed the Cabinet that the recommendations and conditions imposed by the Central Environmental Authority (CEA) had been incorporated into the procurement contract. They also confirmed that the project would be implemented in accordance with the provisions of the Fauna and Flora Protection Ordinance.

Following an International Competitive Bidding process, the High-Level Procurement Committee recommended Indo-East Engineering & Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited Joint Venture as the lowest substantially responsive bidder.

Accordingly, the Cabinet approved the proposal submitted by the Minister of Energy to award the contract to the joint venture for US$3.04 million and Rs. 2,796.14 million, both excluding VAT.