The Cabinet has approved the awarding of a contract to construct three new fuel storage tanks at the Muthurajawela Terminal, aimed at strengthening Sri Lanka’s fuel storage capacity.
The Cabinet has approved the awarding of a contract to construct three new fuel storage tanks at the Muthurajawela Terminal, aimed at strengthening Sri Lanka’s fuel storage capacity.
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 Cabinet had previously approved the project on June 2, 2025, with funding to be provided through the Ceylon Petroleum Koga Storage Terminal Company.
Following a further Cabinet decision on July 20, 2026, the Ministers of Energy and Environment were requested to consult relevant stakeholders and ensure that all environmental, legal and other requirements were addressed before implementation.
The Ministers subsequently informed Cabinet that the recommendations and conditions imposed by the Central Environmental Authority had been incorporated into the procurement contract. The project will also be implemented in accordance with the provisions of the Wildlife and Plant Protection Ordinance.
Accordingly, Cabinet approved the proposal 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.
The joint venture was selected as the lowest bidder recommended by the High-Level Procurement Committee.
The contract is valued at US$3.04 million, excluding VAT, together with Rs. 2,796.14 million, excluding VAT.
