The government has announced that oil in the Mannar Basin is finally ready for extraction, signaling a renewed push into offshore drilling while pledging to end past corruption and mismanagement. Authorities said the arbitrary handling of previous projects will be reviewed, and investigations are set to uncover fraud linked to former officials of the Ministry of Energy.
As an initial step, tenders were called to select a company for oil drilling, with the deadline extended beyond August 30 to attract further bidders. This comes while an interim injunction remains in place over an ongoing case in the Court of Appeal. The dispute involves controversial decisions by former authorities to expand the original 15 drilling blocks in the Mannar and Cauvery Basins to nearly 500 blocks, despite the injunction restricting such changes.
For decades, studies have suggested the presence of significant oil reserves in Sri Lanka’s surrounding seas. A foreign company with joint ownership rights in Sri Lanka recently conducted research in the area, but its permits were suddenly altered, prompting legal action. That case led to the injunction now impacting the new round of drilling.
Despite the legal hurdles, the government insists it is committed to moving forward, ensuring transparency, and opening Sri Lanka’s long-awaited offshore energy sector. If managed properly, Mannar oil could reshape the nation’s economy, reduce dependency on imports, and place Sri Lanka firmly on the global energy map.
