Lanka signs $3.7b oil refinery deal with China’s Sinopec

Sri Lanka has signed an agreement with Chinese state energy giant Sinopec to expedite the development of a proposed $3.7 billion oil refinery in the southern port city of Hambantota, Foreign Minister Vijitha Herath announced on Wednesday. He described the project as one of the largest foreign investments Sri Lanka has received and emphasised its significance for the country’s economic future.

Speaking at a press briefing, Herath stated that the refinery has been under discussion between the two nations for several years, and the government is committed to pushing it forward. He confirmed that Sri Lanka and Sinopec will jointly determine the proportion of refined fuel to be exported from the facility but did not disclose the refinery’s planned capacity.

Sri Lanka currently relies entirely on imported oil, which costs the cash-strapped nation billions of dollars annually, despite operating a few smaller refineries. The new project aims to reduce this dependency and strengthen energy security.

Attribution: Reuters

Subediting: M. S. Salama

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