Though around six investors have already submitted proposals for the Sapugaskanda oil refinery modernization project, it has been revealed that there have been no proposals so far to raise the required loans and implement the project.

This project to increase the refining capacity of the Sapugaskanda refinery from its current 50,000 barrels of crude oil per day to 100,000 barrels per day is estimated to cost around USD 1,800 million.

A Japanese, a Czechoslovakian, two Chinese and two American companies have already submitted proposals for this modernization project.

It is revealed that these companies have not clearly stated how the loans for the implementation of this project would be raised and hence the Ceylon Petroleum Corporation may offer the implementation of this project to China.

China is currently engaged in the development of several infrastructure facilities in Sri Lanka.