News
Sri Lankan Oil and Gas exploration grinds to a standstill amid protracted legal battle
Sri Lanka’s efforts to attract and leverage international investment into exploration and commercialisation of two blocks adding to over 5,000 square kilometers with potential oil and gas resources in the Mannar Basin have once again been gridlocked by legal challenges in the Court of Appeal.
According to the latest developments in the CA (Writ) Application No: 392/2023, the court found that a prima facie case has been established by the Petitioner, Serendive Energy.
Accordingly the court issued orders restraining the 1st to 36th Respondents and/or its servants or agents from granting to any third party other than the Petitioner the rights to offshore exploration of blocks M1 and C1, until a final determination is reached in the case.
Serendive Energy, which has a strategic alliance partnership with a large Indian conglomerate commenced pursuit of legal remedies following a recent effort in 2023 to reverse exploration block award that had previously been made to the company.
Serendive Energy first participated in an open international tender (SL 2019-02) in 2019, and was awarded the blocks, Mannar Basin M1 and Cauvery Basin C1 in May 2021. This decision took place following evaluations conducted by the Petroleum Development Authority, and headed at the time by former Chairman Saliya
Wickramasuriya and Current Chairman Surath Ovitigama, who have long served among the nation’s leading domain experts on oil and gas.As stated in the 2021 Ministry of Power and Energy Annual Report “International competitive bids were called for in the year 2019 for the exploration and production of oil and gas of Mannar Block M1 and Cauvery Block C1 and the bid evaluation process had been concluded in May 2021.”
“Negotiations had been held by the government of Sri Lanka throughout the year 2021 with Serendive Energy (Pvt) Ltd for separate petroleum resources agreements in respect of M1 and C1 blocks, and about 90% of the negotiations have been concluded. The final petroleum resources agreement is expected to be entered into during the first half of the year 2022.”
While the awarding of blocks to Serendive Energy was hailed at the time as critical forward after many previous false starts, all activity on exploration ground to a halt during the country’s economic crisis and the ‘aragalaya’, following which attempts were subsequently made to reverse the award. The Petitioners submitted that such measures amount to a direct contravention of the 2003 Petroleum Act.
The effort to attract international players to invest in Sri Lanka’s Oil and Gas exploration industry which ground to a halt in 1984 with the civil war recommenced in 2003 with the opening up of tenders for exploration to international local and global investors via the Petroleum Resources Act, No.26 of 2003.
Hydrocarbon prospectivity and legislation in Sri Lanka was established in 2001 with the funding by the Asian Development Bank (ADB) and technical assistance from New South Global, a part of the School of Petroleum Engineering within the University of New South Wales (UNSW) based in Sydney, Australia
The team leader of this project, Prof. Ray Shaw concluded in the report that “The Gulf of Mannar basin represents a new deepwater frontier region which has the indicia for hosting significant hydrocarbon accumulations.”
This report and conclusion based on the 2001 TGS Norpec Seismic survey encouraged a further more detailed survey by TGS and a Gravity/Magnetic study which confirmed the finding of this ADB/University of New South Wales Project.
The Petroleum Act 2003 was passed by parliament under the leadership of the then Prime Minister Hon. Ranil Wickremesinghe. However, subsequent mismanagement and bureaucratic inaction hindered any meaningful progress from being achieved.
With exploration and development requiring around 10 years, the window to leverage the country’s natural resource if fast disappearing with global “Net Zero” targets approaching in 2045-50 since the production period offered by the government is 20 years. Hence, all future investors will not have the full 20 years before global demand drops off significantly, making investment in Sri Lanka less attractive.
With the chances of success in this industry being as low as seven to 10%, international investors were already extremely hesitant, while Sri Lanka’s history of nationalization of such industries has proved to be a further deterrent. This included previous instances arbitrary, and often overnight policy changes towards nationalization and expropriation such as with TGS Norpec Seismic survey 2001 and 2005 as well as Caltex, Shell and Esso in the early 1960’s.
With the uncertainty created by two upcoming elections in the next 12 months and the country’s exploration process stuck in legal proceeding, and given the time required post-general election to call for EOI/RFP, shortlist, negotiate, select and conclude various administrative processes, it is unlikely that Sri Lanka to commence a new exploration process for at least two years with new investors for other blocks.
Moreover, Sri Lanka’s oil and gas bid is also still recovering from developments which took place in 2013 when a large regional National Oil Company first announced its intention to bid on multiple blocks, intimidating other interested investors in participating in the tender, only to ultimately refrain from bidding, and subsequently make a global announcement claiming that there was no oil and gas “prospectivity: in the Mannar basin – contradicting many independence assessments and geophysical surveys.
The combination of these factors led to negligible investor interest over the past 10 years, evinced by the lack of progress in that time. The latest injunctions on the largest blocks currently opened for exploration may prove to be the final nail in the coffin.
News
Colombo Law Society objects to judges’ retirement age move
…Urges President not to undermine public confidence in independence of judiciary
The Colombo Law Society has urged President Anura Kumara Dissanayake not to proceed with any constitutional amendment to extend the retirement age of Supreme Court and Court of Appeal judges, warning that such a move could undermine public confidence in the independence of the judiciary.
In a letter dated July 2, 2026, the Society said its Executive Committee had unanimously resolved to convey its concerns following reports of a proposal to increase the retirement age of judges of the superior courts.
The Society said any amendment affecting the tenure of sitting judges should be approached with caution, adding that public confidence in the independence of the judiciary must be safeguarded.
Full text of the letter: The Executive Committee of the Colombo Law Society, at its duly convened meeting held on 25 June 2026, deliberated extensively on the reported proposal to increase the retirement age of Judges of the Court of Appeal and the Supreme Court.
Having carefully considered the matter, the Executive Committee unanimously resolved to convey its concerns to Your Excellency and to express its support for the position taken by the Bar Association of Sri Lanka in its letter addressed to Your Excellency, dated 25 May, 2026.
The Colombo Law Society recognizes and appreciates the invaluable contribution made by members of the higher judiciary to the administration of justice in Sri Lanka. However, we respectfully take the view that any alteration to the constitutionally established retirement age of Superior Court Judges must be approached with the utmost caution and only after broad consultation with all relevant stakeholders.
The existing retirement ages of Judges of the Court of Appeal and the Supreme Court have remained unchanged since the promulgation of the 1978 Constitution. Any departure from this long-standing constitutional framework, particularly where it affects serving judges, may give rise to public concern and perceptions that could undermine confidence in the independence and impartiality of the judiciary.
The independence of the judiciary is one of the cornerstones of the Rule of Law and democratic governance. Equally important is the public perception of such independence. The judiciary must not only be independent in fact but must also be seen to be independent and free from any appearance of influence or accommodation.
The Colombo Law Society further notes that the number of Judges of both the Court of Appeal and the Supreme Court was increased through constitutional reform in 2020. In those circumstances, questions naturally arise as to whether there exists a compelling institutional necessity to alter the retirement age of Superior Court Judges at this juncture.
We respectfully submit that constitutional amendments relating to the judiciary should be undertaken only after careful consideration of their long-term impact on judicial independence, public confidence, and the constitutional framework of the Republic.
Accordingly, the Colombo Law Society respectfully urges Your Excellency to give the fullest consideration to the concerns expressed by the legal profession and to refrain from proceeding with any constitutional amendment seeking to extend the retirement age of Judges of the Court of Appeal and the Supreme Court.
We remain confident that Your Excellency will continue to uphold and safeguard the independence, integrity, dignity, and public confidence in the judiciary, which remain essential to the preservation of the Rule of Law and democratic governance in Sri Lanka.
News
Freedom 250: US Embassy celebrates America’s 250th Independence Day through magic of American cinema
The US Embassy in Sri Lanka commemorated America’s semiquincentennial—250 years of independence—with Chief Guest, Minister of Health and Mass Media Nalinda Jayatissa, and hundreds of Sri Lankan partners, government officials, business leaders, diplomats and friends of the United States, at a Freedom 250 celebration honouring the enduring power of freedom through the lens of American cinema. The July 2 celebration highlighted the ideals that have shaped the United States for two and a half centuries—individual liberty, self-government, freedom of expression, and the belief that free people can dream, create, and shape their own future. The Embassy grounds were transformed into an immersive cinematic experience, celebrating how American films have reflected those freedoms while inspiring audiences across generations and around the world, including in Sri Lanka.
Welcoming guests to the celebration, Chargé d’Affaires Jayne Howell reflected on the profound connection between American freedom and cinematic storytelling. “Tonight, we celebrate 250 years of American independence by honouring one of our nation’s greatest gifts to the world—the art of cinema,” she said.
“For more than a century, American filmmakers have used their creative freedom to craft stories that resonate across every border and culture. From the opening of the world’s first dedicated movie theater in New Orleans, in 1896, to the groundbreaking animation of Snow White, from the sweeping epics like The Godfather to the technological marvels of Avatar, Star Wars and Jurassic Park, and classics like The Bridge on the River Kwai—filmed in Sri Lanka and forever linking the island to Hollywood history—our films reflect the very freedoms we celebrate today—the freedom to dream boldly, to question deeply, and to imagine new possibilities.”
CDA Howell continued, “As we share this cinematic journey with our Sri Lankan friends—fellow champions of democracy and freedom—we’re reminded that the best American stories are universal stories. They speak to the courage we see in The Wizard of Oz, the unity we witness in The Avengers, the wonder we experience through E.T., the spirit of exploration and achievement captured in films like Apollo 11, and the resilience we admire in Forrest Gump. Tonight, we celebrate not just American cinema, but the freedom that makes it possible—the freedom to tell any story, to show America at its best and its most complex, and to believe that movies can change how we see ourselves and each other. That freedom is what we honour on this 250th anniversary and the enduring values that will guide us forward.”
The evening opened with a stunning visual spectacle: rooftop screens displayed on the Embassy building celebrating 250 years of American independence and commemorating the signing of the Declaration of Independence on July 4, 1776. The centerpiece was an open-air screening, under the stars, featuring carefully curated clips that traced American cinema’s evolution—from silent films that established visual storytelling techniques still used today, through Disney’s Snow White and the Seven Dwarfs (the first full-length animated feature), The Matrix’s groundbreaking “bullet time” effects, to Christopher Nolan’s The Dark Knight, which redefined superhero cinema as a vehicle for exploring complex questions about justice and society.
The celebration concluded with fireworks illuminating the Colombo sky as the III Marine Expeditionary Force Band, the US Marine Corps’ forward-deployed band in the Indo-Pacific region, based in Okinawa, Japan, performed a montage of American songs that have inspired generations. Guests enjoyed a menu featuring high-quality US beef and other American food and beverages, showcasing the global reputation of American agricultural exports.
As the United States marks 250 years of independence, Freedom 250 celebrates the enduring idea that has defined America since 1776—that freedom unlocks human potential, fuels creativity and innovation, and empowers individuals to shape a better future. Through education, trade, investment, security cooperation, and the enduring ties between our people, the United States and Sri Lanka continue to strengthen a partnership built on opportunity and shared democratic values.
The US Embassy extends its sincere gratitude to the generous sponsors whose support made this year’s Independence Day celebration possible, including Diamond Sponsors Brandix, Hayleys, Hirdaramani, MAS Holdings, Mastercard, RM Parks, and Visa, along with our other valued partners.
News
CA dismisses application filed by Yoshitha seeking to quash conspiracy charge in money laundering case
The Court of Appeal yesterday dismissed a revision application filed by Yoshitha Rajapaksa seeking to quash a conspiracy charge in the money laundering case, pending before the Colombo High Court.
Rajapaksa had challenged the conspiracy count in the indictment filed by the Attorney General, under the Prevention of Money Laundering Act, contending that the charge was not legally maintainable.
A Court of Appeal Bench, comprising Justices Amal Ranaraja and Dr. Sumudu Premachandra, rejected the application, ruling that the conspiracy charge could proceed before the Colombo High Court.
The ruling clears the way for the High Court to continue hearing the money laundering case, filed by the Attorney General against Rajapaksa.
-
News6 days agoLAWASIA warns against ad hoc initiative to increase judges’ retirement ages
-
Features5 days agoClimate action to bring South Asia together
-
News5 days agoChamuditha to seek removal of injunction on Youtube programme
-
News19 hours agoFreedom 250: US Embassy celebrates America’s 250th Independence Day through magic of American cinema
-
Features7 days agoPeople’s Bank expands digital banking network with 125th cheque deposit kiosk
-
News2 days agoCIABOC to question Harak Kata on Rs. 200 mn bribery allegation
-
News2 days agoSLAF conducts successful rescue mission under UN command in Central African Republic
-
News5 days agoCPRP alleges another death in custody, seeks protection for witness
