Sri Lanka agrees with China's Sinopec to fast-track $3.7 billion refinery

22/1/2025 16:46

Sri Lanka's foreign minister said on Wednesday that the South Asian island nation had signed an agreement with Chinese state energy giant Sinopec to fast-track a proposed $3.7 billion oil refinery in its southern port city of Hambantota.



Sinopec and Sri Lanka will jointly decide the share of refined fuel that will be exported from the facility, Foreign Minister Vijitha Herath told reporters.



"This is one of the largest foreign investment projects Sri Lanka has received and we feel it will be important for us," Herath said.



"This refinery has been discussed between the two countries for many years and we are committed to taking it forward. We hope to break ground as soon as possible."



He declined to provide details on the planned capacity of the refinery.



A Sinopec representative in China did not respond immediately to a request for comment and its Sri Lanka office did not answer phone calls.



Sri Lanka is currently completely dependent on imported oil, which costs the cash-strapped country billions of dollars every year, though it does have some smaller refineries.