0.625
%
Neutral
83
mm boe
0
%
Sri Lanka is a frontier province with a model PSC introduced in 2008, offering straightforward terms. The NPP government's adherence to the IMF programme after debt restructuring has improved stability, although interest in offshore blocks remains limited and Cyclone Ditwah has added fiscal pressure. Outlook maintained because improved stability has yet to generate upstream interest. Outlook: Neutral. Risk premia unchanged at 0.625%.
October 7, 2026
Asia - South West
mm bbl
bcf
Southern Asia, island in the Indian Ocean, south of India.
PSC/PSA
The fiscal system applied in Sri Lanka is based on petroleum resources agreements (PRAs), which are production sharing agreements. Sri Lanka has a model agreement issued by the government in 2013.
President Anura Kumara Dissanayake's NPP won a supermajority in November 2024 and has kept to the IMF programme after completing the debt restructuring. Cyclone Ditwah caused severe damage in late 2025. US and UK guidance cite reform progress, but note bureaucracy, policy reversals and the scale of state enterprises. Sri Lanka has no hydrocarbon production and imports all its fuel; Sinopec agreed in 2025 to build a refinery at Hambantota.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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