– Sri Lanka has opened nearly 34,000 square kilometres of the Mannar Basin to international energy companies for petroleum exploration, raising fresh questions over the country’s potentially vast but largely untapped oil and gas resources.The 2026 Sri Lanka Petroleum Exploration License Awarding Round, officially launched today, will offer four exploration blocks in the Mannar Basin to international companies.The move comes as authorities estimate that the basin could hold around two billion barrels of petroleum and nine trillion cubic feet of natural gas, based on existing geological data.

The official launch ceremony was held at the Sri Lanka Petroleum Corporation Head Office Auditorium in Dematagoda under the patronage of Energy, Ports and Civil Aviation Minister Anura Karunathilake, Labour Minister Dr. Anil Jayantha and Deputy Minister of Finance and Planning.Petroleum Development Authority of Sri Lanka Chairman Prof. Dhammika Thanthrigoda, Director General Dr. Neil de Silva, Ceylon Petroleum Corporation Chairman D.J.A.S. de Rajakaruna and senior Ministry officials were also present.Dr. de Silva said previous exploration had already confirmed the presence of natural gas and liquid hydrocarbons in the Mannar Basin, indicating significant petroleum potential.

However, he said that only a relatively limited area of the basin had been explored so far.This leaves a vast area yet to be assessed using modern geological exploration techniques and advanced technologies, according to the Authority.International companies participating in the latest exploration round will also be given access to geological data on the Mannar Basin currently held by the Petroleum Development Authority.The scale of the estimated resources could prove significant for Sri Lanka, which has historically relied heavily on imported petroleum to meet its energy requirements.

However, the actual size and commercial viability of the resources will depend on further exploration, appraisal and successful extraction.