FINANCIAL CHRONICLE — The Sri Lankan cabinet has officially sanctioned a contract with China Petroleum Pipeline Engineering Company Limited for the construction of an aviation fuel storage facility and a dedicated transport pipeline to Bandaranaike International Airport (BIA) located in Katunayake.
The total project budget is approximately 40.84 million US dollars, along with 8,548.75 million Sri Lankan rupees, which encompasses all relevant taxes, as stated by Minister Nalinda Jayatissa.
“We initiated the bidding process in accordance with international competitive standards, and we received three proposals,” Jayatissa noted.
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The initial green light for this initiative was provided during a cabinet meeting held on July 29, 2024, aimed at establishing a secure and direct fuel supply connection between the main supply hub and the country’s primary international airport.
This initiative includes the construction of an aviation fuel storage tank complex with a capacity of 92,000 cubic meters, along with ancillary facilities at Muthurajawela.
A dedicated pipeline will be built to connect the new storage site at Muthurajawela directly to the aircraft refueling terminal at Katunayake. The contractor will also be responsible for necessary modifications and enhancements to the existing terminal facilities at Muthurajawela.
Currently, aviation fuel is transported to Katunayake mainly via road tankers and rail wagons, leading to logistical challenges, increased transportation costs, and safety concerns.
The new pipeline system is anticipated to provide a reliable and economical supply of jet fuel to airlines, accommodating the growing frequency of flights at the Katunayake airport. (Colombo/Sep22/2026)
