Sri Lanka has signed a landmark agreement with Sinopec, the Chinese international petroleum corporation, to build a state-of-the-art oil refinery in Hambantota. The refinery, with a capacity of 200,000 barrels per day, represents a $3.7 billion investment aimed at boosting the country’s economy.
A significant portion of the refinery’s output will be earmarked for export, contributing to Sri Lanka’s foreign exchange earnings, as highlighted by Minister of Transport, Highways, Ports, and Civil Aviation Bimal Rathnayake.
“This major investment from China is expected to accelerate Sri Lanka’s economic growth and improve the livelihoods of low-income communities in the Hambantota region,” Rathnayake said. “The positive impacts of this project will be felt by the broader Sri Lankan population in the near future.”
The refinery project follows an earlier expression of interest (EOI) under the previous government, which saw seven responses to construct the export-oriented refinery in the southern coastal city of Hambantota, adjacent to a Chinese-owned port.
This agreement further strengthens China’s position in Sri Lanka, a country where India and other developed nations are vying for influence and projects, particularly as Sri Lanka recovers from an economic crisis.