Sri Lanka wants to rope in RIL for oil exploration

The Sri Lankan government wants to rope in Mukesh Ambani-led Reliance Industries (RIL) for exploration of oil in the island nation.

"... (we) are in talks with Reliance for petroleum exploration," Sri Lankan Minister for Investment Promotion Navin Dissanayake told reporters at a CII function here today.

He said he would be visiting Mumbai tomorrow to meet senior RIL officials.

"We have identified couple of blocks exclusively for India," Dissanayake said, adding that RIL has shown interest in the Sri Lankan oil fields.

On the size of the proposed deal with Reliance, he said, "For exploration Cairns India took one block that was of $400 million. So, if Reliance is coming it will be into that figure at least."

The oil blocks which Sri Lanka has offered to RIL are located in Mannar and Southern basins, the visiting minister said.

He also said that his government was talking with Aditya Birla Group for setting up a plant for manufacturing of carbon black, a product used in tyre manufacturing.

The Sri Lankan minister said that the proposed investment in the carbon black plant would be in the range of $40-50 million.

The neighbouring country is also in talks with Mahindra group for setting up of an IT park with an investment of $70-100 million.

The park with a capacity of 10,000 seats is likely to be set up at the outskirts of Colombo, Dissanayake said.

"... They will develop the park, which will have operations like BPO and high end data entry," he said.

The minister has also sought investment from India in the sectors like IT, agriculture, tourism, textiles, gems and jewellery and infrastructure.