Three new fuel storage tanks to be constructed at Muthurajawela terminal

13-Aug-2026

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The Cabinet has approved the construction of three new fuel storage tanks at the Muthurajawela terminal.

Cabinet Spokesman and Minister Nalinda Jayatissa made the announcement while briefing the media on Cabinet decisions at the Government Information Department on August 11, 2026.

According to his announcement, Cabinet had approved at its meeting held on June 2, 2025, the construction of two fuel storage tanks with capacities of 15,000 cubic metres each and another fuel storage tank with a capacity of 10,000 cubic metres at the Muthurajawela terminal, using funds of the Ceylon Petroleum Bulk Storage Terminal Limited.

In addition, Cabinet decided at its meeting held on July 20, 2026, to request the Ministers of Energy and Environment to consult the relevant parties and take appropriate decisions concerning the procedures to be followed to fulfil environmental, legal and other requirements in implementing the project.

Accordingly, the Minister of Energy and the Minister of Environment informed Cabinet that the recommendations and conditions imposed by the Central Environmental Authority had been incorporated into the procurement contract and that the project would be implemented in accordance with the provisions of the Fauna and Flora Protection Ordinance.

Accordingly, Cabinet approved the proposal submitted by the Minister of Energy to award the contract to the joint venture of M/s Indo-East Engineering & Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited, which was the lowest responsive bidder recommended by the High-Level Procurement Committee among the bidders who submitted tenders under the international competitive bidding procedure.

The contract is to be awarded for US$3.04 million, excluding Value Added Tax, and Rs.2,796.14 million, excluding Value Added Tax, he said.