China's Sinopec cleared to build $4.5 billion refinery at Sri Lanka's Hambantota port
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Sri Lanka's Cabinet approves China's Sinopec to invest USD 4.5 billion in a petroleum refinery at Hambantota port, marking the largest foreign direct investment in Sri Lanka.
In a significant move, the Sri Lankan Cabinet has provided the green light for China's energy giant, Sinopec, to establish a new petroleum refinery plant at the strategic Hambantota port. The announcement was made by Energy Minister Kanchana Wijesekara on Monday (Nov 27), marking a noteworthy development in Sri Lanka's foreign direct investment landscape.
"The Cabinet has granted its approval on Monday to allow China's Sinopec to establish a new petroleum refinery plant at Hambantota port," Wijesekara said.
The forthcoming petroleum refinery plant by Sinopec, which made its entry into the Sri Lankan market in July of the current year, is poised to become the largest foreign direct investment in Sri Lanka, amounting to a substantial USD 4.5 billion.
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The ambitious project is not just limited to refining, it also includes the establishment of an associated products training centre, reflecting a comprehensive approach to capacity building and skill development.
Strategic significance of Hambantota port
Hambantota, the second-largest port in Sri Lanka after Colombo, holds strategic importance.
Opened in 2010, the port has been jointly managed since 2017 through a partnership between the Sri Lanka Port Authority and China Merchant Ports, known as the Hambantota International Port Group.
The port's construction was initially funded through a commercial loan from the Exim Bank of China.
Continued Chinese investments in Sri Lanka
This significant investment by Sinopec follows earlier initiatives by China, including the state-run China Merchant Port Holdings' 99-year lease of Hambantota port in 2017.
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Additionally, a substantial million-dollar deal was struck for the construction of a logistics and storage hub in Colombo port, highlighting the continued economic collaboration between China and Sri Lanka.
(With inputs from agencies)
