By The Pulseline News Desk
The Government plans to increase Sri Lanka’s fuel storage capacity to cover 45 days of consumption, alongside major investments in pipeline infrastructure aimed at strengthening fuel security and reducing the cost of importing petroleum products.
Presenting the 2027 Budget, President Anura Kumara Dissanayake said Rs. 22.34 billion had been allocated for a project to construct a jet fuel pipeline from Muthurajawela to the Bandaranaike International Airport (BIA) and develop fuel storage facilities with a capacity of 92,000 metric tonnes.
The investment is expected to strengthen the country’s capacity to store and distribute fuel, while improving the supply infrastructure supporting the aviation sector.
In a separate initiative, the Government has called for tenders for the Rs. 16.332 billion Kolonnawa-to-Harbour Pipeline Project, which is intended to improve the efficiency of fuel transfers between the harbour and the Kolonnawa storage complex.
The project aims to reduce the time taken to unload fuel shipments from the current 96 hours to 48 hours. It is expected to be completed within 18 months.
Reducing unloading times is also expected to lower demurrage costs incurred when vessels remain at port beyond the permitted period. Each additional day of delay currently costs the country approximately US$30,000 in payments to shipping companies.
The proposed investments come as Sri Lanka seeks to strengthen its energy supply infrastructure and reduce vulnerabilities associated with fuel imports, storage limitations and delays in handling shipments.
Increasing storage capacity, improving pipeline connectivity and speeding up the unloading of imported fuel are expected to support more reliable distribution while limiting avoidable costs in the petroleum supply chain.
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