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bitumen1Ushering a new era for the local construction sector, Ceylon Petroleum Corporation (CPC) has commenced tar production at the country’s sole refinery located in Sapugaskanda.

During a recent media briefing held in Colombo, Hon. Minister of Petroleum Resources Development Arjuna Ranatunga noted that, “Understanding the rapid growth of the local construction sector and the demand for tar, CPC re-strategized the operations of the Sapugaskanda refinery to support tar process. By commencing tar production locally, we envision to contribute towards the sustainable growth of the country, enabling us to produce quality material locally and save a substantial amount of government funds that would be otherwise spent on importing the finished product.”

CPC expects an increase in profitability and enhancement in refinement once the processing commences locally. The ability to introduce tar at a competitive rate will positively impact the local construction industry by reducing their cost of raw material. CPC will also have a greater control over the quality of the product and believes that its fully-fledged laboratory with its skilled professionals will continue to maintain the quality to match international standards. In addition, the tar production also enables CPC to up the total diesel output by 15% and the furnace oil by 35-40%.

“With the first phase of production, we are looking at catering to 40% of the country’s total tar requirement with a daily output of 150MT. Further, with continuous improvements to the refinery’s processing capacities, we are aiming to increase the tar production to 225MT per day thereby increasing the total supply to 60% in the coming months. With increased production of tar, not only are we able to positively impact the local construction sector by providing locally produced quality tar at competitive prices, but also be able to enhance the values of the refinery to uplift Small and medium Enterprises where the use of tar product is high,” Chairman of the Ceylon Petroleum Corporation Dammika Ranatunga clarified.
Tar is known to be a crucial component as a binder in asphalt for roads, runways, parking lots and footpaths. Moreover, the material is used in countless applications from roofing, waterproofing, sealing and insulating for carpet tile backing, soundproofing, mildew protection, to bind blocks, backing to mirrors, on shoe soles, fence post coating, and soil stabilization. Not only does it builds roads, but also is vital for all kinds of infrastructure and construction projects that are in progress in Sri Lanka.

 - Media Unit - Minister Office


Current Local Fuel Prices





Petrol 92 Octane : Rs. 450.00 Per Litre

Petrol 95 Octane : Rs. 540.00 Per Litre

Auto Diesel : Rs. 440.00 Per Litre

Lanka Super Diesel : Rs. 510.00 Per Litre

Lanka Industrial Kerosene : 399.00

Kerosene : Rs 87.00 Per Litre


Source : Ceylon Petroleum Corporation