Cabinet Approves Tender to Build Three Fuel Storage Tanks at Muthurajawela Terminal

The Cabinet of Ministers has approved a proposal by the Minister of Energy to award the contract for constructing three new fuel storage tanks at the Muthurajawela Terminal to a joint venture comprising M/s Indo-East Engineering & Construction (Lanka) (Private) Limited and Ceylex Engineering (Private) Limited.

Selected as the lowest bidder through an international competitive bidding process, the joint venture will execute the project for US$ 3.04 million and Sri Lanka Rupees 2,796.14 million, both excluding Value Added Tax (VAT).

Funded by the Ceylon Petroleum Storage Terminal Company, the project received initial Cabinet approval on June 2, 2025, for the construction of two 15,000 cubic meter fuel storage tanks and one 10,000 cubic meter fuel storage tank.

Following a subsequent Cabinet decision on July 20, 2026, to address legal and environmental requirements, the Minister of Energy and the Minister of Environment confirmed that the Central Environmental Authority’s recommendations have been integrated into the contract and that the project will adhere to the Wildlife and Plant Protection Ordinance.