Sri Lanka and China’s leading petroleum firm Sinopec have formalized a landmark agreement for a $3.7 billion oil refinery in Hambantota. The deal was signed during President Anura Kumara Dissanayake’s four-day visit to Beijing, marking a significant milestone as the largest foreign direct investment in Sri Lanka to date.
The project, first approved by Sri Lanka’s Cabinet in November 2023, involves constructing a state-of-the-art oil refinery with a capacity of 200,000 barrels per day. A large portion of the refinery’s output will be for export, contributing to Sri Lanka’s foreign exchange earnings. This major investment is expected to drive economic growth and improve the livelihoods of low-income communities in the Hambantota area, with benefits anticipated to spread across the entire nation.
The signing ceremony was attended by several dignitaries, including Minister of Foreign Affairs, Labour, and Tourism Vijitha Herath, Minister of Transport, Highways, Ports, and Civil Aviation Bimal Rathnayake, and Director General of Government Information H.S.K.J. Bandara.