Did Minister Anil Jayantha state that oil can soon be extracted from the Mannar oil deposits?

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Sri Lanka’s pursuit of petroleum exploration dates back several decades. In 1974, the Soviet Union initiated oil exploration near Pesalai in Mannar Island. By 2011, scientific studies confirmed the presence of an active petroleum system in the Mannar Basin.

However, due to subsequent political changes in the country, the prospect of domestic oil production remained unrealised. With Cabinet approval granted in 2025 to resume exploration in the Mannar oil fields, and amid ongoing global challenges in oil supply and transportation, the topic has once again gained public attention.

In light of this renewed interest, we investigated to verify the accuracy of claims circulating on social media regarding the Mannar oil deposits.

Social Media Posts

Social media posts have emerged claiming that Minister Anil Jayantha stated, “There are five oil deposits, and extraction will begin soon, eliminating the need to rely on foreign fuel.”

Facebook | Archived Link

We undertook a detailed investigation to verify the accuracy of these claims.

Fact Check

Amid the Middle East conflict and its impact on global fuel supply, we investigated claims that Sri Lanka plans to begin extracting fuel from the Mannar Basin in the near term, allegedly stated by Minister Dr Anil Jayantha Fernando.

Reviewing the ITN programme “On Air Politics” (10 March), the Minister confirmed the presence of oil and gas in the Mannar Basin, with Cabinet approval in place to advance exploration. This includes securing investment, technology, and expert support.

He noted that around five deposits have been identified, with substantial data for three to four, and that current efforts focus on building the framework for development – bidding, investment, consultancy, and funding.

Importantly, the Minister emphasised that while reserves are confirmed, extraction will take time and structured implementation. He did not indicate any immediate fuel supply but highlighted that future progress could reduce reliance on imports.

The relevant segment is provided below.

Manager of the Petroleum Corporation, Dr Neththikumar

According to Dr Neththikumar, General Manager of the Petroleum Corporation, this is a highly technical, capital-intensive project aligned with global industry standards. He estimates that it will take at least three years to begin commercial operations and up to five years to fully complete the process. The Mannar Basin is believed to hold resources valued at approximately USD 267 billion. Even with a 50% share to investors, Sri Lanka could retain around USD 133.5 billion, highlighting the project’s national importance. Priority is being given to agreements that balance investor confidence with national benefit, developed in consultation with industry experts. The government retains full legal authority over exploration areas, and under the Petroleum Resources Act, all petroleum data belongs to the state, managed by the relevant authority. These insights were reported in October 2025. Details here

Ministry of Power and Energy

According to the media secretary to Deputy Minister of Energy, Mr Arkam Ilyas, exploration, development, and production of oil and gas across four selected blocks in the Mannar Basin is expected to take approximately three years. Negotiations with selected investors on the terms of the Petroleum Resources Agreement are scheduled to conclude by August 2026, with block awards and operational approvals expected by November 2026, and initial exploration activities anticipated to commence by December 2026.

Oil and Gas Exploration in Sri Lanka

Sri Lanka’s oil and gas exploration is overseen by the Petroleum Resources Development Secretariat (PRDS) under the Ministry of Energy. Exploration activities in the country date back to before the 1950s, with data collected prior to 1984 considered “old data,” and data gathered after 2001 classified as “new data.” Historically, Sri Lanka’s location within the ancient African Rift system has long suggested the potential presence of oil and gas reserves. Geologically, sedimentary formations in the Mannar Basin, dating back to the Jurassic period and linked to the Mozambique era, further indicate strong prospects for hydrocarbon deposits. With a distinguished background in the oil and energy sector, experienced electrical engineer Dhanuška Nuwan Bandara has mapped out a clear timeline of key milestones in Sri Lanka’s petroleum exploration history. Details here Archived Link

In 2011, two natural gas discoveries, Dorado and Barracuda, were made at the M2 exploration site in the Mannar Basin. These landmark findings provided scientific confirmation of an active petroleum system in the region. With the support of regional experts, Sri Lanka’s Petroleum Resources Development Secretariat estimates that the Mannar Basin alone holds the potential to yield over 2 billion barrels of oil and more than 9 trillion cubic feet of natural gas. On 2 October 2011, then-President Mahinda Rajapaksa stated at a ceremony held at the Temple of the Sacred Tooth Relic that a vast crude oil and gas deposit had been identified in the Mannar Basin. Details here

Join us to explore our fact-checking insights and uncover the truth behind the information.

Conclusion

Our investigation shows that the social media claims suggesting Minister of Labour and Deputy Minister of Finance and Planning, Dr Anil Jayantha Fernando, stated that fuel would be extracted from the Mannar Basin in the near future are misleading. The Minister clarified that while data confirms the presence of oil in the Mannar Basin, the next step involves establishing the necessary extraction mechanisms, which will take time. He further noted that, in the future, successful progress in this process could help reduce Sri Lanka’s reliance on fuel and gas imports.