The Cabinet has approved a contract for constructing three new fuel storage tanks at the Muthurajawela terminal, with the project valued at approximately 3.04 million dollars and 2.8 billion rupees.
Sri Lanka's Cabinet has greenlit a major infrastructure project at the Muthurajawela petroleum terminal, selecting a joint venture between Indo-East Engineering & Construction (Lanka) and Ceylex Engineering to oversee the expansion. The undertaking represents a significant investment in the country's energy storage capacity amid growing demand.
The project encompasses the construction of three storage tanks with combined capacity of 40,000 cubic meters. Two tanks will each hold 15,000 cubic meters, while the third will accommodate 10,000 cubic meters. According to project details, the total expenditure is valued at 3.04 million dollars and 2,796.14 million rupees, with costs calculated before the addition of Value Added Tax. The initiative will be financed through Ceylon Petroleum Storage Terminals Limited (CPSTL), the state-owned entity responsible for managing petroleum storage infrastructure.
Energy Minister Nalinda Jayatissa emphasized that environmental safeguards have been integrated into the project framework. He noted that recommendations and conditions set by the Central Environmental Authority have been incorporated into the contract agreement for the procurement process. The minister's comments suggest that environmental considerations were a key component of the approval process, reflecting regulatory requirements governing such infrastructure developments in Sri Lanka.
