July 28, Colombo: Sri Lanka's only oil refinery in Sapugaskanda has closed down for renovation and routine maintenance work which is carried out every two years.

Petroleum Industries Minister Susil Premajayantha along with Ministry officials inspected the progress of the renovation work today.

Denying media reports that the refinery was shut down due to a breakdown in machinery and due to a shortage of crude, the Minister told the media the modernization work of the refinery carried out along with maintenance work has successfully reached the final phase.

The authorities expect the renovation work that started on July 02 to be completed by August 05. The government is spending 800 million rupees for the renovation.

The oil refinery at Sapugaskanda produces 50,000 barrels of fuel daily which is issued at Kolonnawa and Sapugaskanda refineries.

The government has launched the "Sapugaskanda oil refinery expansion and modernization project" to expand the production capacity to 100000 barrels per day.

The petroleum authority Ceylon Petroleum Corporation has acquired approximately 15 hectares of land that required for the proposed expansion project.

Sri Lanka Petroleum Corporation signed an agreement on 28th April 2008 with the National Iranian Oil Refining and Distribution Company to carry out the project with an estimated cost of US$ 2 billion.