Sri Lanka: Sinopec seeks govt support to expedite USD 3.7 bn oil refinery construction

Chinese energy giant Sinopec on Wednesday sought the Sri Lankan government's help in expediting the construction of a USD 3.7 billion oil refinery at the island nation's strategic Hambantota port, according to a statement.

An agreement to build the state-of-the-art oil refinery was signed between the two nations in January during President Anura Kumara Dissanayake's visit to China. However, its commencement has been slow-going.

A delegation of the oil company called on Foreign Minister Vijitha Herath to discuss the slow progress of the project, the Foreign Ministry said in a statement.


The delegation, led by the company's vice president, sought government assistance to iron out remaining difficulties to expedite the work, it said.

The refinery, with a capacity of 200,000 barrels per day, is said to become the main attraction at an investment zone around the Chinese-built Hambantota port.

China secured a long-term lease to build the economic zone. It also secured the Hambantota port on a 99-year lease as a debt swap.