Sri Lanka plans 45-day fuel reserves, pipeline upgrades and free smart meters
Sri Lanka's 2027 Budget sets out plans to hold enough fuel for 45 days and invest in pipelines and storage, alongside a programme of free smart electricity meters. The President announced the measures in Parliament on November 12 as proposals to improve energy security and the operation of the fuel and electricity networks.
Fuel storage and pipeline projects
A project allocated Rs. 22.34 billion would build a jet-fuel pipeline between Muthurajawela and Bandaranaike International Airport and develop storage for 92,000 metric tonnes of fuel. The announced 45-day reserve is a planned storage target, not a statement that those stocks are already available.
Tenders have also been called for the Rs. 16,332 million Kolonnawa-to-Harbour Pipeline Project. Its target is to cut the time needed to unload fuel from 96 hours to 48 hours, with completion expected within 18 months. The Budget account put the cost of each day's shipping delay at about US$30,000 in demurrage payments. The lower unloading time and savings remain expected benefits, not completed results.
Who is included in the smart-meter plan?
Free smart electricity meters are planned for 300,000 consumers using more than 180 units of electricity. Separately, all Lanka Electricity Company (LECO) consumers using more than 120 units are to receive smart meters. The two consumption thresholds apply to different parts of the announcement and should not be treated as a single eligibility rule.
The Budget also proposes a separate subsidy and tax changes for household solar-battery storage, covered in our existing solar-storage report. The fuel and meter measures are announcements and project targets; an installation timetable for individual consumers was not provided.
