Business

Mannar’s offshore opportunity: the dollar question behind Sri Lanka’s oil and gas search

Published

4 weeks ago

2026/08/20

By Ifham Nizam

The Mannar Basin is emerging as a potentially significant frontier in Sri Lanka’s search for new investment, energy security and foreign-exchange savings.

With investment proposals being invited for petroleum and natural-gas exploration and production in four blocks, the country has an opportunity to attract international capital into a high-risk but potentially high-value sector.

But for an economy still highly sensitive to foreign-exchange outflows, the real business question is bigger than whether Mannar contains commercially viable hydrocarbons.

It is whether a successful offshore discovery could eventually reduce the country’s dependence on imported fuel and, in turn, ease pressure on scarce US dollars and the rupee.

The government spent about USD4 billion on fuel imports in 2025, making fuel the largest component of the country’s import bill. At an exchange rate of roughly Rs.332 to the US dollar, that is equivalent to around Rs.1.33 trillion.

The foreign-exchange exposure has become even more apparent this year. Fuel-import expenditure rose sharply in the first five months of 2026 to about USD2.70 billion, equivalent to roughly Rs.896 billion at current exchange rates.

April alone saw fuel imports of USD886 million, equivalent to nearly Rs.294 billion at that exchange rate.

The Central Bank reported that April’s fuel bill increased by 149.9% year-on-year amid higher global prices and increased import volumes.

Those numbers put Mannar into a very different economic perspective.

A commercially viable domestic oil or gas resource would not simply be another commodity discovery. It could potentially become a source of foreign-exchange savings, provided the resource is large enough, commercially recoverable and economically competitive with imported alternatives.

The Ceylon Electricity Board’s long-term generation plan records that the Dorado discovery indicated nearly 350 billion cubic feet of recoverable natural gas, while preliminary estimates place the wider Mannar Basin’s gas potential at around 9 trillion cubic feet. The plan also makes clear that significant uncertainty remains, particularly over the technically complex Barracuda discovery.

That distinction is critical.

Potential resources are not the same as proven reserves, and proven reserves are not necessarily commercially recoverable reserves, and energy expert noted.

‘The country therefore should not count prospective Mannar hydrocarbons as future foreign-exchange earnings until exploration establishes their commercial viability.

But the potential economic prize is too large to ignore.’

He added: “If domestic gas could eventually substitute a portion of imported fuel used in power generation or industry, every dollar of import expenditure avoided would reduce pressure on the external account. The benefit would be even greater if local production could be developed at a competitive cost and under contractual arrangements that ensure a substantial share of the economic value remains in the country.”

All News Advertisement

Business

Indo-Sri Lanka Chambers forge alliance to drive infrastructure and real estate investment

Published

23 hours ago

2026/09/14

Thilina Walpola

The exchange of the MoU between the two organisations

By Sanath Nanayakkare

In a major boost to bilateral economic ties, the Chamber of Construction Industry of Sri Lanka (CCISL) and the Indo–Sri Lanka Chamber of Commerce & Industry (ISCCI) have signed a strategic Memorandum of Understanding (MoU) to deepen cooperation in real estate, infrastructure, and urban development.

The agreement establishes a formal framework for both institutions to drive collaborative initiatives, including business delegations, high-level conferences, workshops, B2B matchmaking sessions, and technical site visits. Designed to bridge businesses, government institutions, and project stakeholders across the Palk Strait, the partnership aims to unlock new avenues for cross-border joint ventures and technology transfers.

A focal point of this newly minted partnership is the facilitation of an upcoming trade delegation from the National Real Estate Development Council (NAREDCO) of India. Comprising major Indian players in the real estate and infrastructure sectors, the visiting delegation will engage in targeted business meetings, workshops, and inspection tours of prominent construction projects in Sri Lanka.

Under the terms of the MoU, CCISL will serve as the principal host coordinator in Sri Lanka. In close consultation with ISCCI, the apex construction body will curate itineraries, identify viable projects for engagement, and facilitate high-level dialogues with key government agencies, regulatory bodies, and industry leaders.

With both nations prioritizing sustainable urban growth, modern construction technologies, and infrastructure expansion, industry leaders view the partnership as a timely catalyst for economic rejuvenation. The collaboration is anticipated to accelerate market access, knowledge exchange, and foreign direct investment into Sri Lanka’s burgeoning property and development sectors.

To ensure the success of the upcoming NAREDCO delegation, CCISL has issued an urgent appeal to statutory authorities and relevant project owners to come forward with viable investment proposals. Stakeholders holding projects seeking foreign investment or technical partnerships are invited to submit comprehensive details to the Secretary General and CEO of CCISL via email at secyces@gmail.com.

Both chambers emphasize that translating this foundational agreement into tangible partnerships and robust capital flows will significantly strengthen bilateral connectivity between the construction and real estate sectors of India and Sri Lanka.

Business

Hettich celebrates a decade in Sri Lanka with partner meet in Colombo

Published

23 hours ago

2026/09/14

Thilina Walpola

Over the past decade, Hettich has strengthened its presence in Sri Lanka through its focus on German engineering, innovation, quality and functionality

Hettich, the globally renowned German manufacturer of furniture fittings and architectural hardware known for its state-of-the-art manufacturing plants and magical interior solutions across the world celebrated a significant milestone in Sri Lanka, marking 10 years of presence in the country with its inaugural Partner Meet in Colombo.

The landmark event brought together Hettich’s key partners, stakeholders and industry leaders to celebrate a decade of growth, collaboration and shared success, while reaffirming the company’s long-term commitment to the Sri Lankan market.

Over the past decade, Hettich has strengthened its presence in Sri Lanka through its focus on German engineering, innovation, quality and functionality, contributing to the creation of contemporary and intelligently designed living and working spaces across the country.

The gala evening was graced by a distinguished delegation of senior leaders, including Dr. Andreas Hettich, Chairman, Hettich Group Advisory Board; S. K. Poddar, Chairman, Hettich India & Adventz Group; Mr. Akshay Poddar, Director, Hettich India; Andre Eckholt, Managing Director, Hettich India, SAARC, Middle East & Africa; Rahul Thakkar, Director – Sales, Hettich India & SAARC; and Dinusha Bhaskaran, Managing Director, Vallibel One PLC.

Business

GS Evo Motors launches all-new JMEV EWIND

Published

23 hours ago

2026/09/14

Thilina Walpola

Priyantha Perera, Chief Executive Officer of GS Evo Motors (left), and Sunil Wettasinghe, Chairman of GS Evo Motors, introducing the latest JMEV Ewind Electric SUV to the local market

GS Evo Motors Limited, the authorized distributor of JMEV electric vehicles in Sri Lanka, has officially launched the JMEV EWIND, a next-generation compact electric SUV. The vehicle is designed to offer strong performance, intelligent technology, premium comfort, and high safety standards, marking another milestone in Sri Lanka’s growing electric mobility sector.

The EWIND features a sleek, aerodynamic exterior with penetrating LED daytime running lights, trapezoidal chain-inspired LED tail lamps, 19-inch alloy wheels, and a bold silhouette. Inside, it offers a spacious cabin with a panoramic moonroof and retractable curtain, an ultra-thin suspended instrument panel, a D-shaped multifunction steering wheel, multi-colour ambient lighting, premium finishes, and electrically adjustable front seats.

The SUV is available in single-motor front-wheel drive configurations, producing up to 108 kW and 210 Nm, with 0–100 km/h acceleration in 8.9 seconds.