Geographic Feature: Sri Lanka

Friday, August 21, 2026. SRI LANKA ENERGY PROFILE: Sri Lanka is actively advancing oil and gas exploration (primarily in Mannar Basin) while pursuing critical minerals development (notably graphite and mineral sands) and renewable energy goals, with 2025-2026 marking renewed licensing and investment efforts. MANNAR BASIN OIL/GAS LICENSING: Licensing round (Sri Lanka plans to invite international bids in August 2026 for upstream petroleum development, exploration and extraction of gas and oil, in four blocks of Mannar Basin). Past discoveries and reserves (Cairn Lanka, Indian subsidiary, drilled wells in 2011 confirming natural gas in Barracuda and Dorado fields in Mannar Basin; overall offshore basins—Mannar, Cauvery, Lanka—hold petroleum potential estimated at ~$250-267 billion). Licensing process updates (2025) (in mid-2025, Cabinet approved selection of marketing consultant for new Mannar Basin licensing round; PDASL closed its RFP in September 2025, with plans to launch EOIs once consultant selected). Natural gas confirmation (natural gas confirmed in Mannar Basin, with estimates around 350 billion cubic feet cited in some reports; CPC preparing to call for investors). REFINERY MODERNIZATION: Sapugaskanda refinery (Sri Lanka's refinery, operated by CPC, undergoing expansion plans via BOT to increase capacity from ~50,000 to 100,000 barrels per day; EOIs invited in 2025 with shortlisted companies). RENEWABLES TARGETS: Energy goals (government aims for 70% of energy requirements from renewable sources by 2030, alongside broader energy transition efforts). CRITICAL MINERALS POLICY: National minerals policy (Sri Lanka approved its first national minerals policy since 1999 in February 2026, supporting mining development). Graphite investment call (2026) (official calls for investment in integrated mine development and value-added graphite projects, e.g., at Kahatagaha, targeting graphene, advanced carbon materials, and lithium-ion battery components under 30-year frameworks). Mineral sands project (Capital Metals Taprobane) (high-grade project advancing with two mining licenses secured; construction targeted for Q4 2026, pending final approvals, low capex, strong projected IRR). Critical minerals focus (Sri Lanka's resources include graphite, phosphorus, titanium, and zirconium relevant to clean energy/battery tech; limited public emphasis on lithium deposits specifically). OFFSHORE ENERGY INVESTOR INTEREST: Basin modelling (recent basin modelling and studies attracting renewed investor conversations for Sri Lanka's offshore potential as of early 2026). ENERGY MIX CONTEXT: Primary energy supply (relies heavily on coal and imports, with ~23% from modern renewables; efforts ongoing to diversify including via domestic fossil resources). EXPLORATION HISTORY: Timeline (exploration dates to 1960s; past progress stalled due to costs and instability, but renewed push in 2025-2026). MARKET REPORTS: 2026 analyses (dedicated 2026 Sri Lanka oil & gas market analyses cover field output, LNG/refinery profiles, and competitive landscape). BROADER CRITICAL MINERALS OUTLOOK: Global context (global reports, e.g., IEA 2026, note volatility in lithium and other battery metals, but Sri Lanka-specific activity centers more on graphite and mineral sands than lithium mining). THE READ: Sri Lanka actively advancing oil and gas exploration, Mannar Basin, critical minerals development, graphite and mineral sands, renewable energy goals, 2025-2026 renewed licensing and investment efforts; Mannar Basin licensing round, international bids August 2026, upstream petroleum development, exploration and extraction gas and oil, four blocks Mannar Basin; Cairn Lanka, Indian subsidiary, drilled wells 2011, natural gas confirmed, Barracuda and Dorado fields, Mannar Basin; offshore basins Mannar, Cauvery, Lanka, petroleum potential ~$250-267 billion; mid-2025 Cabinet approved marketing consultant selection, new Mannar Basin licensing round; PDASL closed RFP September 2025, plans launch EOIs consultant selected; natural gas confirmed Mannar Basin, estimates 350 billion cubic feet, CPC preparing call investors; Sapugaskanda refinery, operated CPC, expansion plans BOT, capacity 50,000 to 100,000 barrels per day, EOIs invited 2025, shortlisted companies; government aims 70% energy requirements renewable sources 2030, broader energy transition efforts; first national minerals policy since 1999 February 2026, supporting mining development; official calls investment integrated mine development, value-added graphite projects, Kahatagaha, graphene, advanced carbon materials, lithium-ion battery components, 30-year frameworks; Capital Metals Taprobane, high-grade project, two mining licenses secured, construction Q4 2026, pending final approvals, low capex, strong projected IRR; graphite, phosphorus, titanium, zirconium, clean energy and battery tech, limited public emphasis lithium deposits specifically; recent basin modelling and studies, renewed inves...