Sri Lanka is estimated to hold up to three trillion cubic feet of natural gas in its offshore reserves, according to a report published by The Sunday Morning.

Quoting Petroleum Development Authority of Sri Lanka Chairman Saliya Wickramasuriya, the report said the country may also possess several billion barrels of crude oil beneath its seabed within territorial waters and the Exclusive Economic Zone.

These estimates are based on basin modelling and seismic data collected in recent years, which have improved understanding of Sri Lanka’s offshore resource potential.

However, commercial extraction is not expected to begin in the near future, as efforts to attract investors and issue exploration licences are still at an early stage.

Sri Lanka has introduced a new regulatory framework, including the Petroleum Resources Act of 2021, to enhance transparency and boost investor confidence in offshore exploration.

Under the “Explore Sri Lanka” programme, authorities have shifted to an open licensing system, dividing offshore areas into smaller blocks to attract more international energy companies.

According to the PDASL, several global firms have already shown interest, signalling renewed momentum in a sector that has seen limited progress for decades.