More than 650 employees at Sri Lanka's sole oil refinery, the Sapugaskanda Refinery, may face job losses as the facility undergoes a significant transformation. The government plans to retain only around 200 of the current employees for the new enterprise, with the remaining workers being placed in a pool from which necessary personnel will be selected to maintain operations.

In March, the Cabinet of Ministers approved a proposal to operate the Sapugaskanda Oil Refinery as a state-owned entity separate from the Ceylon Petroleum Corporation (CPC). The government emphasized the need for a critical investment to upgrade the refinery to ensure its operation for another 25 years.

Plans include seeking Expressions of Interest (EOIs) to find a strategic investment partner to enhance the infrastructure and address current operational challenges. The government is exploring the possibility of relocating the refinery to Trincomalee, featuring modern facilities and a developed Tank Farm.

Established in 1969, the Sapugaskanda Refinery supplies approximately 25% of Sri Lanka's refined petroleum products.