Nearly 34,000 km² of offshore acreage, in waters where gas has already been found, is now open to international energy companies. Bids are expected to close in early 2027.

Sri Lanka has opened its offshore waters to international oil and gas explorers for the first time in more than a decade. The Petroleum Development Authority of Sri Lanka (PDASL) launched the Sri Lanka Licensing Round 2026 (SL2026-01) on 25 August 2026, offering four exploration blocks in the Mannar Basin off the north-western coast.

A proven petroleum system

In 2011 Cairn Lanka’s Dorado and Barracuda wells found gas and condensate, the first discoveries in Sri Lanka’s history. A technical review in the Oil & Gas Journal puts their combined mid-case recoverable resource at 839 billion cubic feet of gas and 5.88 million barrels of condensate.

Most of the 42,000 km² Sri Lankan side of the basin has never been drilled. That is where explorers see the larger prize.

“Previous exploration has demonstrated the presence of a working petroleum system in the Mannar Basin,” said Dr. Neil DeSilva, Director General of PDASL.

Why it matters for Sri Lanka

Sri Lanka imports all the oil and coal it uses. The Central Bank reports that fuel imports cost US$ 4.07 billion in the first eight months of 2026, up 61.6 per cent on the same period of 2025. Domestic gas could change that equation:

• Energy security: a home-grown source of firm power that does not arrive by tanker
• Foreign exchange: less spent on imported diesel and fuel oil
• Cleaner power: gas emits about half the carbon dioxide of coal, and backs up solar and wind on the path to 70 per cent renewable electricity by 2030
• Investment and revenue: explorers carry the exploration risk, while royalties and profit-sharing would flow to the State if production follows
• Skills and jobs: demand for engineers, geoscientists, marine services and local suppliers

“We invite experienced international energy companies to evaluate this opportunity and work with Sri Lanka as long-term partners,” said the Minister of Energy, Hon. Anura Karunathilaka.

Production depends on exploration confirming gas that can be recovered commercially, and PDASL will announce award dates in due course.

Find out more: www.srilankalicensinground.com  ·  slr2026@pdasl.gov.lk