Capacity at Ceypetco's Sapugaskanda refinery is to be doubled from 50,000 barrels per day or 6500 metric tonnes, to process high value fuels.
The expansion project is tipped to cost in the region of 500 million dollars, Jaliya Medegama, Ceypetco Chairman said.
"At this stage we have done just a concept paper. We might have to hire consultants for a comprehensive project proposal, for design of the refinery and a financial analysis."
The added capacity will process more high value fuels like petrol, diesel, kerosene and less of low value fuel like furnace oil.
The increased capacity will also up liquid petroleum gas (LPG) production from current 10 percent to 70 percent of Sri Lanka's roughly 150,000 tonne market for LPG.
Funding options for the refinery could include part Ceypetco funds, though the govern