COLOMBO, Feb. 11 (Xinhua) -- Sri Lanka's cabinet has approved a proposal to develop the country's Sapugaskanda oil refinery and set up a new refinery within the same premises with a capacity of 100,000 barrels a day on build-operate-transfer (BOT) model, according to the Department of Government Information on Tuesday.

The department that announced the recent cabinet decisions said although the Ceylon Petroleum Corporation (CPC) made various efforts to modernize and upgrade the Sapugaskanda oil refinery quantitatively and qualitatively to fulfill the market demand, it had not been successful.

Under the energy policy framework of the present government, the modernization of the existing refinery or construction of a new refinery has been identified as a priority.

Approval has been granted by the CPC to call for expressions of interest to identify a suitable investment partner based on the feasibility study done in 2022, the department said.

The Sapugaskanda oil refinery, built in 1969, is the sole facility of its kind in the country. In its current capacity, the refinery only meets 25 percent of the local demand for refined petroleum products, with the remainder largely imported. Enditem

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