Sri Lanka’s Mannar Basin licensing round offers four offshore blocks covering nearly 34,000 km² to international energy investors.
COLOMBO — Sri Lanka has opened four offshore exploration blocks covering nearly 34,000 square kilometres in the Mannar Basin to international energy companies, reviving efforts to commercially develop the country’s offshore petroleum resources after years of limited exploration activity.
The Sri Lanka Licensing Round 2026, designated SL2026-01, represents the country’s first major international offshore licensing round in more than a decade. Bids are due by February 2, 2027, after which successful bidders will be selected through a formal evaluation and award process.
Energy Minister Anura Karunathilaka has described the initiative as part of Sri Lanka’s broader strategy to responsibly develop its offshore resources, attract international investment and strengthen long-term energy security.
Rather than depending primarily on upfront payments, the potential economic value to Sri Lanka will be determined by the terms under which exploration and any eventual production take place.
Nearly 34,000 Square Kilometres Offered
Four exploration blocks, identified as 2026-MB-01, 2026-MB-02, 2026-MB-03 and 2026-MB-04, are being offered under the licensing round.
Together, they cover approximately 33,964 square kilometres, across water depths ranging from about 100 metres to 3,000 metres.
Previous exploration has already provided evidence of hydrocarbons in the Mannar Basin.
Exploratory drilling by Cairn Lanka in 2011 resulted in gas and condensate discoveries and demonstrated the presence of what the Petroleum Development Authority of Sri Lanka describes as a working petroleum system.
Those earlier discoveries provide an important geological foundation for the latest effort to attract international explorers.
PDASL Director General Dr. Neil DeSilva has said the combination of available acreage, technical information and Sri Lanka’s strengthened regulatory framework gives international companies an opportunity to take a fresh look at the basin.
Investors are being provided access to geological, geophysical and well data, including more than 11,000 line kilometres of 2D seismic data, limited conventional 3D seismic data in West Mannar, basin studies and other technical information.
International Campaign Targets Energy Investors
Sri Lanka is also promoting the licensing round internationally as it seeks technically and financially qualified companies capable of undertaking offshore exploration.
An investor roadshow is scheduled in London on September 29 and 30, followed by a virtual investor briefing on October 21 and investor engagement in Kuala Lumpur on November 16 and 17.
The international campaign is intended to give prospective investors access to technical information and direct engagement with PDASL before the bidding deadline.
The Government’s plan to seek investment proposals for exploration and production in four Mannar Basin blocks was approved by the Cabinet in May 2025. Parliament’s Ministerial Consultative Committee on Energy Affairs subsequently approved the Order governing the calling of investment proposals and formalisation of the process at a meeting held on September 11, 2026.
That Order was made under the Petroleum Resources Act No. 21 of 2021 and had previously been published in an Extraordinary Gazette dated July 16, 2026.
Production Depends on Successful Exploration
Any prospect of commercial production remains dependent on what further exploration establishes.
Although previous drilling has confirmed the presence of a working petroleum system, companies taking up the acreage will still have to undertake the technical and commercial work necessary to determine whether discoveries can be developed economically.
The Government has indicated that it hopes successful exploration could eventually lead to commercial oil or gas production within the coming years.
That timetable, however, depends on several stages, including seismic evaluation, exploratory and appraisal drilling, investment decisions and the infrastructure required to bring commercially viable discoveries into production.
For Sri Lanka, the immediate milestone is therefore the licensing process itself. The February 2 deadline will establish which international companies are prepared to submit bids for the four offshore blocks and on what technical and commercial terms.
