Mar 14, Colombo: United States Trade and Development Agency (USTDA) today awarded a grant worth 51 million rupees to develop Sri Lanka’s oil and gas sector.

Promoting the energy security in Sri Lanka the grant will fund technical assistance to the Ministry of Petroleum and Petroleum Resources Development in support of its efforts to develop a comprehensive oil and gas regulatory system and establish an organizational structure for the regulatory authority, a U.S. Embassy release said.

In a awarding ceremony at the Finance Ministry in Colombo U.S. Ambassador to Sri Lanka Robert Blake signed the grant on behalf of the U.S while Dr. P.B. Jayasundera, Secretary for the Ministry of Finance and Planning, represented the Sri Lankan government. The statement noted that Sri Lanka has no oil or gas production of its own and imports approximately 80,000 barrels per day and the establishment of a sound regulatory regime will contribute to Sri Lanka’s nascent petroleum industry and reduce the nation’s dependence on imports.

U.S. Ambassador Blake expressed the necessity of a well-developed regulatory structure to attract and keep high-quality investors in the oil sector. “We hope our assistance will help Sri Lanka establish an open and transparent regulatory system that both protects Sri Lanka's interests and gives investors confidence that they can earn a worthwhile return on their investment."

"Development of the offshore oil and gas sector could be an important opportunity for Sri Lanka to reduce energy imports, generate revenue and create jobs. The United States wants to help Sri Lanka maximize its potential gain from oil and gas exploration,” said Ambassador Blake.