Lanka IOC says it will invest around $35 million (€27 million) into expanding an oil tank farm located in the Trincomalee port, both storing and exporting the product.
The tanks currently at the farm date back to the 1940s and studies have been carried out on how to refurbish them.
Once the project is complete, the product will be sold on the domestic market.
There are 99 tanks on the property, with storage capacities of 12,000KL each, at the farm which is the largest such facility between the Middle East and Singapore.
At the moment, 18 tanks are already in use at the site although the other tanks will be renovated in phased stages over a period of years.
The renovations will involve improving the fuel handling and operation facilities, building some new tanks and making the jetty at the site stronger.
Nearby the company has also built a lube blending plant that has the capacity of 18,000 tonnes a year.