A high-stakes move is underway as Sri Lanka prepares to open the Mannar Basin to global investors, unlocking billions in oil and gas potential amid growing regional interest.
The government is preparing to call for international tenders to develop and exploit mineral resources in the Gulf of Mannar, marking a major step in Sri Lanka’s offshore energy strategy.
A senior official confirmed that arrangements are being finalized to attract foreign investment for the proposed development projects, with the process expected to begin in the near future. The official noted that while the bidding process was initially scheduled to start last month, it was delayed due to pending approvals from the Attorney General’s Department.
Under the proposed plan, four identified zones in the Mannar Basin will be opened for exploration and development. Several major international energy companies, including firms from India and Qatar, have already expressed strong interest in participating in the project.
Earlier offshore explorations have confirmed the commercial viability of Sri Lanka’s oil and gas reserves. According to official reports released in 2021, the estimated total value of the resources in the Mannar Basin stands at approximately US $ 267 billion, highlighting the strategic importance of the project to the national economy.
Once the tender is officially announced, interested international mineral and energy companies will be granted around six months to submit their bids. The initiative is expected to boost foreign direct investment, strengthen energy security, and position Sri Lanka as a key player in regional offshore energy development.
