Colombo, 02 October 2026 – Sri Lanka today marked a significant stride in bolstering its energy infrastructure and aviation fuel security with the commencement of construction for a vital Jet A-1 aviation fuel pipeline system and new oil storage tank complexes at Muthurajawela. The ambitious project was inaugurated under the patronage of President Anura Kumara Dissanayake, signaling the government’s commitment to maintaining a robust state presence in the energy market while ensuring efficient service delivery to the populace.
Speaking at the ceremony, President Anura Kumara Dissanayake reiterated the government’s overarching objective: “to maintain a strong state presence in the energy market while providing an efficient service to the people.” He highlighted substantial progress over the past two years towards establishing a resilient energy market that does not burden the public. This initiative aligns directly with the national agenda to develop critical energy sector infrastructure, aiming to guarantee secure aviation fuel supplies, reduce operational costs, and meet the escalating future demand for aviation fuel.
Transforming Aviation Fuel Logistics for Bandaranaike International Airport
A cornerstone of this development is the dedicated pipeline and associated tank complex designed to seamlessly connect the Muthurajawela storage facility with Bandaranaike International Airport (BIA) in Katunayake. This strategic link is crucial for enhancing the security of aviation fuel supplies and significantly cutting down transportation costs to the country’s main international gateway.
The Ceylon Petroleum Corporation (CPC) has initiated construction on five new Jet A-1 fuel storage tanks, which will collectively add an impressive 92,000 cubic metres to the nation’s capacity. This expansion includes:
- Two large Jet A-1 tanks, each with a capacity of 30,000 cubic metres.
- Two medium-sized tanks, each providing 15,000 cubic metres of storage.
- An additional tank with a capacity of 2,000 cubic metres.
The fuel supply system will feature a 21-kilometre-long underground pipeline, 10 inches in diameter, extending from the Muthurajawela tank complex directly to the airport. This phase of the project is slated for completion within 30 months.
Expanding National Petroleum Storage Capacity with CPSTL
Further strengthening the country’s petroleum infrastructure, the Ceylon Petroleum Storage Terminal Limited (CPSTL) simultaneously commenced construction today on three new storage tanks at the Muthurajawela Terminal. Upon their completion, these tanks will provide an additional total storage capacity of 40,000 cubic metres, comprising two tanks of 15,000 cubic metres each and one tank of 10,000 cubic metres.
This CPSTL project, with a contractual period of 18 months, is scheduled to conclude in April 2028. The new tanks are being constructed to stringent international standards and best practices, ensuring paramount safety, reliability, and operational efficiency. This expansion is set to bolster Sri Lanka’s fuel reserves, enhance operational flexibility, and guarantee reliable, uninterrupted distribution of fuel products to meet the country’s burgeoning energy requirements.
Ministers and Chairman Highlight Strategic Vision and Financial Prudence
Minister of Ports and Civil Aviation and Minister of Energy, Anura Karunathilaka, underscored the broader context of these projects within Sri Lanka’s energy transition journey. “We are now in an era of energy transition. The world is rapidly moving towards the use of clean energy,” he stated, emphasizing the importance of electric vehicles and solar energy. He also highlighted plans to add 1,200 megawatts of solar power capacity to the national grid by 2029, urging citizens to focus on controlling fuel consumption and shifting towards more energy-efficient practices.
Mr. D. J. Rajakaruna, Chairman of the Ceylon Petroleum Corporation, shed light on the financial prudence enabling these massive investments. Despite facing significant global challenges, including the Middle East war, CPC managed to provide fuel at considerably lower prices to the public compared to international market increases. He revealed that while global diesel prices rose by 91%, Sri Lanka saw only a 39.5% increase; petrol, which surged 80% globally, increased by only 41% locally.
Remarkably, the Corporation recorded a profit of Rs. 28 billion this year, following Rs. 36 billion last year. Mr. Rajakaruna clarified that these profits are not leading to immediate price reductions but are being reinvested into crucial infrastructure development projects, including:
- Adding capacity to 11 tanks, including the completion of six previously abandoned tanks.
- Modernizing the 90-year-old oil-filling section and establishing a new gantry system.
- Laying two new pipelines for fuel unloading from the port to Kolonnawa.
- Constructing the new Jet A-1 pipeline to Katunayake.
- Upgrading and laying new pipeline systems across the network.
“We are implementing these projects using those profits. Therefore, we have returned the benefits to the people through these investments,” Mr. Rajakaruna affirmed.
The inauguration was attended by a distinguished gathering, including Minister of Science and Technology, Professor Chrishantha Abeysena; Deputy Minister of Energy, Arkam Ilyas; Member of Parliament Kumara Jayakody; Secretary to the Ministry of Energy and Senior Additional Secretary to the President, Russell Aponso; foreign ambassadors; government officials from the Ministry of Energy and the Ceylon Petroleum Corporation; and representatives from Sinopec.
This multi-faceted project underscores Sri Lanka’s unwavering commitment to securing its energy future, optimizing supply chains, and fostering economic growth through robust infrastructure development.
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