Sri Lanka is preparing to launch a new licensing round for offshore oil exploration in the Mannar Basin, Energy Minister Kumar Jayakody announced in parliament on Thursday.
Speaking on 25 July, Jayakody confirmed that cabinet approval had been granted to appoint a marketing consultant tasked with attracting investors to explore the Mannar Basin, a region located off the north-western coast of the Tamil homeland.
“The cabinet gave approval to appoint a marketing consultant to attract investors for the area (Mannar Basin),” the minister said. “After a consultant or consultancy company is appointed, we will begin marketing the blocks.”
He added that the preliminary work required for this process is currently underway.
Sri Lanka has long eyed the Mannar Basin as a potential source of hydrocarbon revenue, with exploratory activity in the region spanning over a decade. In 2011, Indian company Cairn India discovered natural gas deposits in the Mannar Basin, marking the island’s first hydrocarbon find. However, the project was later abandoned as the cost of extraction was considered too high at the time.
Jayakody confirmed that there are currently no active exploration licences in the region, signalling the government’s intent to revive interest through fresh investment and promotional efforts.
The announcement comes amidst a broader effort by the Sri Lankan government to attract foreign investment and generate revenue as Colombo attempts to recover from its worst economic crisis in decades.
Previous attempts to exploit natural resources in Mannar have sparked questions around transparency, environmental safeguards, and the equitable distribution of any potential benefits.