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.”

JAT Holdings PLC recorded Group revenue of LKR 3.04 billion for the quarter ended 30 June 2026, representing a 34% year-on-year increase, supported by growth across both its Sri Lankan and international operations. Local revenue increased by 8% to LKR 1.83 billion, while revenue from foreign operations increased by 110% to LKR 1.21 billion.

Gross profit increased by 29% to LKR 1.07 billion, while gross profit margin moderated from 37% to 35%, reflecting higher input costs associated with increases in global commodity prices. Operating profit declined by 25% to LKR 174 million, primarily reflecting the consolidation of Mirotone’s expenses, alongside higher administrative, selling and distribution expenses associated with Volt software depreciation, increased transportation costs following fuel price increases and additional warehouse capacity established to support wider market reach. Foreign exchange gains partly offset finance costs, with profit before tax remaining broadly unchanged at LKR 167 million and profit after tax at LKR 150 million.

Commenting on the results, CEO Nishal Ferdinando said, “The quarter reflects a meaningful increase in the contribution from our international operations, which grew by 110% year on year, supported by strong growth across key regional markets including Bangladesh and the Maldives, alongside continued growth in Sri Lanka. While input-cost pressures and investments in building capacity affected operating margins during the period, we maintained profit after tax broadly in line with the previous year. Our focus remains on converting the investments we have made across markets and business verticals into sustained earnings growth over the medium to long term.”

JAT continued to strengthen its leadership across its core business segments. The wood coatings business maintained its 57% market share while achieving 8% quarter-on-quarter revenue growth despite supplier price increases that reduced net gross profit margin by 4%. The paint, chemicals and related products segment recorded 85% quarter-on-quarter revenue growth, with its share of the Brilliant White segment increasing to 11%. Brushes and Rollers delivered 78% quarter-on-quarter revenue growth, expanded its outlet reach by 12% to more than 3,000 outlets, and further strengthened its market-leading position through a 3% increase in market share.

Reaffirming its commitment to empowering women across the organization, Allianz Lanka’s Women in Leadership (WIL) Employee Resource Group (ERG) recently hosted its third consecutive branch engagement programme under the theme “Lead. Inspire. Empower.”

The event brought together over 35 female employees from Allianz Lanka’s Colombo and Western Zone branches for a morning of learning, networking, and professional development designed to support their leadership journeys.

The programme featured guest speaker Ms. Manori Unambuwe, Founder & CEO of Accentae Consulting and Vice President – Global Strategy at IronOne Technologies. Drawing on more than two decades of international leadership experience across organizations including SAP, IBM, Oracle, and Just-In-Time Holdings, she shared valuable insights on leadership, resilience, and building impactful careers. Ms. Unambuwe has also served as Sri Lanka’s Ambassador to Germany, with concurrent accreditation to Switzerland and Croatia.

Participants also benefited from an interactive learning session conducted by  Charitha Bandara, Head of Sales Learning Academy, who equipped attendees with practical knowledge and skills to support both personal and professional growth.