General11 August 2026

3 new fuel storage tanks planned for Muthurajawela terminal

Cabinet granted approval to construct two 15,000 cubic metre fuel storage tanks and one 10,000 cubic metre fuel storage tank at the Muthurajawela terminal utilising funds from the Ceylon Petroleum Storage Terminals Limited.

The Cabinet decided on July 20 to request the Minister of Energy and the Minister of Environment to discuss with relevant parties and reach appropriate decisions regarding the procedures to follow to meet environmental, legal, and other requirements when implementing the project.

Accordingly, the Minister of Energy and the Minister of Environment informed the Cabinet of Ministers that the recommendations and conditions prescribed by the Central Environmental Authority were included in the contract agreement of the procurement and that the project will be implemented in accordance with the provisions of the Fauna and Flora Protection Ordinance.

The Cabinet of Ministers approved the proposal presented by the Minister of Energy to award the contract to the substantially responsive lowest bidder recommended by the High-Level Procurement Committee, M/s Indo-East Engineering & Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited Joint Venture, out of the bidders who submitted bids under the international competitive bidding procedure, for a sum of US dollars 3.04 million (excluding VAT) and Sri Lankan rupees 2,796.14 million (excluding VAT).
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