China, Sri Lanka to Fast-Track Hambantota Refinery

Chinese President Xi Jinping (R) shakes hands with Sri Lankan President Anura Kumara Dissanayake during a signing ceremony at the Great Hall of the People in Beijing on January 15, 2025. (Photo by Aaron Favila / POOL / AFP)

China’s state-owned oil company Sinopec signed an agreement with the Sri Lankan government to accelerate the building of a $3.7 billion oil refinery in the port city of Hambantota. The agreement includes fast-tracking unresolved issues around water access, land allocation, and taxes. The deal will be the largest single foreign direct investment in Sri Lanka’s history.

The long-stalled refinery project will be the country’s first domestic source of refined fuel, and the two sides will decide which share of the oil will be exported. The agreement, announced on Wednesday, is among the fifteen deals signed by Sri Lankan President Anura Kumara Dissanayake in China.

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by CGSP Staff

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