Sri Lanka Greenlights $4.5 Billion Sinopec Petroleum Refinery at Hambantota Port
Image Source: Swarajya
The Sri Lankan Cabinet has granted approval for China’s energy giant, Sinopec, to establish a colossal $4.5 billion petroleum refinery plant at the strategically positioned Hambantota port, as confirmed by Energy Minister Kanchana Wijesekara on November 27. This development marks the largest foreign direct investment, bolstering Sri Lanka’s economic landscape.
“The Cabinet has endorsed the establishment of a new petroleum refinery plant by China’s Sinopec at Hambantota port,” announced Wijesekara, highlighting that the refinery will be complemented by a dedicated training centre for associated products.
Hambantota, the nation’s second-largest port after Colombo, has been under the joint management of the Sri Lanka Port Authority and China Merchant Ports since 2017, operating as the Hambantota International Port Group. The port, inaugurated in 2010, was built with funding secured through a commercial loan from China’s Exim Bank.
This substantial investment by China follows the precedent set by the 99-year lease granted to state-owned China Merchant Port Holdings for the Hambantota port in 2017. Additionally, a million-dollar agreement was inked for the construction of a logistics and storage hub at the Colombo port, further strengthening Chinese involvement in Sri Lanka’s port infrastructure.
The initiation of this mammoth petroleum refinery project by Sinopec at Hambantota port amplifies the strategic positioning of Sri Lanka in the global energy map and substantiates the nation’s attractiveness for substantial foreign investments.
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- News Writer
- Harshit Tokas is a Political Science and International Affairs Post-Graduate with a passion for understanding and analyzing complex political landscapes. Skilled in research, data analysis, and policy development. Eager to contribute his knowledge and insights to drive positive change.
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