More than 650 employees at the Sapugaskanda Refinery, the country’s sole oil refinery, face potential job losses due to its transformation into a separate public enterprise.
According to sources, the government plans to retain only approximately 200 of the current employees for the new enterprise. The remaining workers will be placed in a pool from which the new enterprise will select the necessary personnel to maintain operations.
In March, the Cabinet of Ministers approved a proposal to operate the Sapugaskanda Oil Refinery as a state-owned business entity separate from the Ceylon Petroleum Corporation (CPC). The government has identified the need for a critical investment to upgrade the refinery to ensure its operation for another 25 years.
As a result, it has been decided to operate the Sapugaskanda Oil Refinery as a separate public enterprise and to call for Expressions of Interest (EOIs) to select a suitable strategic investment partner to upgrade the infrastructure and address existing operational challenges.
The Power and Energy Minister stated that the government is also exploring the option of relocating the Sapugaskanda Oil Refinery to Trincomalee in the future, with modern facilities and the development of the Tank Farm.
Established in 1969, the Sapugaskanda Oil Refinery is Sri Lanka’s only oil refinery, meeting approximately 25% of the country’s demand for refined petroleum products.
