Sri Lanka awards Rs827mn lubricating oil contracts to IOC, Chevron Lubricants as the government moves to secure essential supplies for the operation of key thermal power generation facilities during the 2026/27 period.
Sri Lanka awards Rs827mn lubricating oil contracts to Lanka IOC and Chevron Lubricants
The Cabinet approval covers the procurement of lubricating oil for the Sapugaskanda power station, with contracts awarded to Lanka IOC PLC and Chevron Lubricants Lanka PLC for separate power generation units.
Cabinet Spokesman and Minister Nalinda Jayatissa announced that the government had approved the contracts following the relevant procurement process. The lubricating oil supplies will be used at the Sapugaskanda power station, one of Sri Lanka’s important thermal power generation facilities that contributes to the national electricity supply.
Under the approved procurement, Lanka IOC has been awarded the contract to supply lubricating oil for the Sapugaskanda-A division. The company will provide 316,000 litres of lubricating oil at a total cost of Rs. 392.47 million, inclusive of Value Added Tax (VAT).
Meanwhile, Chevron Lubricants Lanka PLC secured the contract to supply lubricating oil for the Sapugaskanda-B division. The agreement covers the supply of 304,000 litres of lubricating oil valued at approximately Rs. 434.86 million, including VAT.
Combined, the two contracts are worth more than Rs. 827 million and form part of the government’s efforts to ensure uninterrupted operations at thermal power generation facilities. Lubricating oil is a critical component in power plant operations, helping maintain engine performance, reduce wear and tear on machinery, and improve overall operational efficiency.
The Sapugaskanda power station remains a significant asset within Sri Lanka’s energy infrastructure, particularly during periods when thermal generation is required to supplement hydroelectric and renewable energy sources. Reliable maintenance and operational support are essential to ensuring stable electricity generation and minimizing the risk of equipment-related disruptions.
Industry analysts note that timely procurement of operational materials such as lubricants is vital for maintaining power plant reliability. As energy demand continues to fluctuate throughout the year, ensuring adequate supplies for major facilities supports broader energy security objectives and helps maintain consistent electricity supply across the country.
The contract awarded to Lanka IOC further strengthens the company’s role in Sri Lanka’s energy sector. Beyond its fuel retail and distribution operations, Lanka IOC has continued to expand its presence in industrial and commercial energy-related segments, including lubricant supply solutions for major infrastructure and industrial projects.
Similarly, Chevron Lubricants Lanka remains a key supplier within the lubricant market, serving a wide range of industries including transportation, manufacturing, construction, and power generation. The company’s latest contract reinforces its longstanding involvement in supporting industrial operations across Sri Lanka.
The procurement comes as authorities continue to focus on maintaining the operational readiness of energy infrastructure while balancing cost efficiency and supply reliability. Government agencies have increasingly emphasized competitive procurement processes to secure essential products and services required for public sector operations.
The announcement that Sri Lanka awards Rs827mn lubricating oil contracts to IOC, Chevron Lubricants highlights the importance of ongoing investment in maintenance and operational support for critical energy assets. Ensuring the smooth functioning of facilities such as the Sapugaskanda power station remains a priority as the country works to meet electricity demand and strengthen energy sector resilience.
With the contracts now approved, Lanka IOC and Chevron Lubricants Lanka are expected to commence supplies for the 2026/27 operational period, supporting the continued performance and reliability of the Sapugaskanda power station and contributing to the stability of Sri Lanka’s power generation network.