Sri Lanka is estimated to possess up to three trillion cubic feet of natural gas in its offshore reserves, according to an interview published by The Sunday Morning.
Quoting Saliya Wickramasuriya, Chairman of the Petroleum Development Authority of Sri Lanka, the report also highlighted the potential for “several billion barrels” of crude oil beneath the country’s seabed within its territorial waters and Exclusive Economic Zone.
These estimates are based on basin modelling and seismic data collected in recent years, which have significantly enhanced understanding of Sri Lanka’s offshore energy potential.
However, commercial extraction is not expected to begin in the near term, as efforts to attract investors and issue exploration licences are still at an early stage.
Sri Lanka has introduced a new regulatory framework, including the Petroleum Resources Act of 2021, aimed at improving transparency and boosting investor confidence in offshore exploration.
Under the “Explore Sri Lanka” initiative, authorities have moved away from traditional bidding rounds to an open licensing system, dividing offshore areas into smaller blocks to encourage broader participation from international energy companies.
According to the PDASL, several global firms have already shown interest in exploring Sri Lanka’s offshore resources, indicating renewed momentum in a sector that has seen limited development for decades.
